Issue - meetings

To consider the recommendations of the Executive in respect of the Housing Revenue Account budget for 2020/21.

RECOMMENDATION That Council approve:

1)          the Housing Revenue Account budget;

2)            that Council house dwelling rents be increased by 2.70% effective from April 2020 in line with the Welfare Reform and Work Act 2015;

3)            that Garage rents be increased by 2.38% effective from April 2020 in line with Council fees and charge;

4)            that Shared Equity Rents will be increased by 2.43% based on September RPI, effective from April 2020;

5)            that Tenant Service Charges are set in line with estimated costs;

6)            the Housing Major Repairs (capital) programme for 2020/21 as set out in Appendix B;

7)            that Sheltered room guest charges for 2020/21 remain at £9.50 per night per room.

It was proposed by Councillor John Halsall and seconded by Councillor John Kaiser that the Housing Revenue Account Budget 2020/21 as set out in Agenda Pages 39 to 50, be approved.

Upon being put to the vote, it was:

RESOLVED:  That

1)   the Housing Revenue Account budget be approved;

2)   that Council house dwelling rents be increased by 2.70% effective from April 2020 in line with the Welfare Reform and Work Act 2015;

3)   that Garage rents be increased by 2.38% effective from April 2020 in line with Council fees and charge;

4)   that Shared Equity Rents be increased by 2.43% based on September RPI, effective from April 2020;

5)   that Tenant Service Charges are set in line with estimated costs;

6)   the Housing Major Repairs (capital) programme for 2020/21 as set out in Appendix B be approved;

7)   that Sheltered room guest charges for 2020/21 remain at £9.50 per night per room.

That Council be recommended to approve the following:

1)          The Housing Revenue Account budget;

2)            Council house dwelling rents be increased by 2.70% effective from April 2020 in line with the Welfare Reform and Work Act 2015;

3)            Garage rents be increased by 2.38% effective from April 2020 in line with Council fees and charge;

4)            Shared Equity Rents will be increased by 2.43% based on September RPI, effective from April 2020;

5)            Tenant Service Charges are set in line with estimated costs;

6)            The Housing Major Repairs (capital) programme for 2020/21 as set out in Appendix B;

7)            Sheltered room guest charges for 2020/21 remain at £9.50 per night per room.

The Executive considered a report setting out the proposed Housing Revenue Account budget for 2020/21.

The Executive Member for Finance and Housing introduced the report and highlighted the fact that the Housing Revenue Account was a ringfenced fund through which Council owned social housing was maintained.  Councillor Kaiser reminded the meeting that the Council had bought these homes back from the Government some years ago because they were retaining 50% of the rents; which meant that the homes could not be maintained at a decent standard.  The opportunity was therefore taken to buy the 2,400 homes at around £92m. 

Councillor Kaiser explained that over the last four years Council house rents in the Borough had fallen by about 15%, which was as a result of the Government introducing a compulsory 1% reduction per annum for the last four years.  Normally rents would have increased in line with CPI which would have meant that they would have gone up, depending on inflation, by around 2.7% per annum.  This compulsory reduction no longer existed therefore it was proposed to increase rents by 2.7% from April 2020.

The reason for the proposed increase was to ensure that the Council had enough money to serve the debt for the purchase of the homes from the Government and keep them at a decent standard.  The feasibility of raising more money to purchase more social homes was currently being considered.

It was noted that sheltered room guest charges would remain at £9.50 per room.

RESOLVED that Council be recommended to approve the following:

1)          The Housing Revenue Account budget;

2)            Council house dwelling rents be increased by 2.70% effective from April 2020 in line with the Welfare Reform and Work Act 2015;

3)            Garage rents be increased by 2.38% effective from April 2020 in line with Council fees and charge;

4)            Shared Equity Rents will be increased by 2.43% based on September RPI, effective from April 2020;

5)            Tenant Service Charges are set in line with estimated costs;

6)            The Housing Major Repairs (capital) programme for 2020/21 as set out in Appendix B;

7)            Sheltered room guest charges for 2020/21 remain at £9.50 per night per room.