Agenda item

Neil Aves, Assistant Director, Housing Services, outlined a report detailing the proposed 2011-12 annual rent and service charge rise to tenants and the proposals for other rents and ancillary charges used for specific elements of the Council’s housing stock.  It was noted that the report would be presented to Cabinet on 7^th February 2011.

The Committee noted the methodology behind the rent setting process and the amounts set, based on the property size ranging from £61.50 for  a bedsit to £116.33 for a 5 bed and larger property.  It was noted that when the rent formula was applied directly across all 6,500 council dwellings, this equated to an average 6.82% rise. This was in line with the national average of rent increases and consistent with government guidelines. 

The Assistant Director discussed the increase in garage rents, and utility and other service charges. He concluded that in conjunction with the HRA Budget adoption report, the recommended increases would deliver a balanced HRA budget and ensure medium term sustainability for the HRA Business Plan.

In the ensuing debate Members raised a number of questions/ comments regarding the level of rent and the provision of maintenance.  The Committee was advised that the rent shown was the pure rent and residents were sent a statement  setting out the respective charges.

Resolved- That the Committee note the following recommendations that will be considered by Cabinet at its meeting on 7^th February, 2011.

(a)  That the rent increase for 2011/12 be set according to the national rent restructuring formula, equivalent to an average increase of 6.82%. 

(b)  That heating, utility and ancillary charges are increased by 4.6%, based on the September RPI figure used in rent setting. 

(c)  That service charges are increased by 5.1%, being the RPI+0.5% uplift used for rent setting. 

(d)  That garage rents are increased by RPI (4.6%). 

(e)  That ‘other committee’ property rents are increased by 6.82% in line with the average increase of all housing properties.