Agenda item

Call In: Housing Revenue Account Business Plan

Minutes:

The Committee considered the call-in, deferred from the meeting held on 17th November 2016, of the Cabinet decision of 17th October 2016 to implement a new rents policy as set out in the Housing Revenue Account (HRA) Business Plan.

 

The Interim Strategic Director Regeneration, Housing & Resources, Mike England, reminded Members of the background to the issue, most pertinently the allocation and rents for the 23 new build Council homes to be made available at Ledgers Road early in 2017.  Officers confirmed that as a result of a recent court case, the Local Lettings Plan in place to allocate these homes was now very likely to be unlawful and the properties would therefore be let according to the Council’s standard allocations scheme.  The Council’s wider thinking on the approach to affordable rents had evolved since the original decision and Members were informed that the intention was to develop two types of affordable rented accommodation:

 

·  Slough Rent – at traditional council or housing association target levels.

·  Slough Living Rent – to be affordable to those on average incomes in the borough but also to those receiving benefits.

 

The approach would be further refined as part of the approval of new housing and planning policies to enable it to apply to Council, housing association and private developments.  The current proposal was that at least 25% of new properties would be at the Slough Rent with the remainder at Slough Living Rent.  The 23 units at Ledgers Road would be included as part of the 25% at the Slough Rent.

 

Members discussed a range of issues relating to a variable rent policy including the impact of the Government’s decision not to implement the ‘Pay to Stay’ policy and the fact that the Council was currently required to reduce rents on existing properties.  Increasing rents on some new build properties would raise additional income to help stabilise the HRA in the medium term and fund the building of new homes.  The Committee welcomed the progress that had been made since the last meeting in refining the strategic approach to affordable rents on new build properties, and it was therefore decided to take no further action in relation to the call-in.

 

Resolved –  That no further action is taken on the call-in.

 

(Councillor Usmani left the meeting)

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