Agenda item

(a)  That Council house dwelling rents for 2016/17 decrease by 1% over the 2015/16 rent with effect from Monday 4th April 2016, in line with current government guidelines and legislation.

(b)  That garage rents, heating, utility and ancillary charges increase by 0.8% with effect from Monday 4th April 2016, based upon the September RPI figure.

(c)  That service charges increase by 0.8% with effect from Monday 4th April 2016, based upon the September RPI figure.

(d)  That 'Other committee’ property rents increase by an average of 0.8% from Monday 4th April 2016 in line with the September RPI figure.

A report was considered on the changes to housing rents and service charges for 2016-17.  It was proposed that Council house rents decrease by 1%, in line with current government legislation and guidelines, and that garage rents, service and other charges increase by 0.8% based on the September’s inflation figure.

The Council house rent reduction was in compliance with the Welfare Reform and Work Bill which required providers of social housing to reduce rent by 1% each year for the next four years.  The impact was a reduction in the average weekly rent from £104.70 in the current year to £103.66 next year.  The total estimated loss in potential rental income was £9.7m and an average decrease of 3.9% in weekly rent over the next four years.

Noting that the recommendations were in line with legislative requirements and government guidance, the Cabinet agreed to recommend the proposed changes to housing rents and service charges to Council on 26^th January 2016 to enable tenants to receive notification well within statutory timescales.

Recommended –

(a)  That Council house dwelling rents for 2016/17 decrease by 1% over the 2015/16 rent with effect from Monday 4th April 2016, in line with current government guidelines and legislation.

(b)  That garage rents, heating, utility and ancillary charges increase by 0.8% with effect from Monday 4th April 2016, based upon the September RPI figure.

(c)  That service charges increase by 0.8% with effect from Monday 4th April 2016, based upon the September RPI figure.

(d)  That 'Other committee’ property rents increase by an average of 0.8% from Monday 4th April 2016 in line with the September RPI figure.