Issue - meetings

Report of the Head of Finance

Presented by the Corporate Portfolio Holder and Housing Portfolio Holder

The Housing Portfolio Holder presented the report to Members.

He highlighted that the rent increase had been worked out on the approved option C and therefore it was proposed to increase rents by 5.41% for properties that are not yet at the target rent level, and 2.2% for those that are at target. He added that this approach would allow the Council to continue investing in improving the housing stock, and also ensure that discrepancies where tenants pay different levels for the same type of property are remedied. He also advised that rent increases would be lower in future years under the HRA business plan.  

Councillor T J Pendleton stated that the budget was in a much better position than it was twelve months previously.

It was moved by Councillor R D Bayliss, seconded by Councillor N J Rushton and

RESOLVED THAT:

1.    The Assurance Statement by the S151 Officer be noted,

2.    The Council be recommended to:

a.    Approve that council house rents in 2015/16 be increased by an average of 5.41% (average increase £4.27 per week).

b.    Approve the decision to let all properties at target rent on re-let regardless of the status of the incoming tenant.

c.    Approve the increase of 2.3% (average increase 14 pence) in garage rents for 2015/16.

d.    Approve the increase of 10% for central heating charges for 2015/16

e.    Approve the average increase of 1.82% (9 pence per week) in the weekly service charge for 2015/16.

f.     Approve the ground rent increase at Appleby Magna caravan site of 2.3% (70 pence per week) on the anniversary of each individual rent agreement in 2015/16.

g.    Approve the lifeline charges increase of 2.3% (98 pence per quarter) from July 2015.

h.    Approve the Housing Revenue Account budget for 2015/16 attached as appendix a.

Reason for decision: To enable the Council to set a balanced Housing Revenue Account Budget for 2015/16.

Report of the Head of Finance

Presented by the Corporate Portfolio Holder and Housing Portfolio Holder

The Housing Portfolio Holder presented the report to Members.

He advised Members that the Government had announced that from 2015/16 new guidance on setting rent increases would be introduced and, if adopted,  this would have a downward effect on future rental income predictions. He stated that officers had looked into the possible options for the Council to approach for rent increases and these were detailed in the report and option C – Accelerated Convergence was the recommended approach. This would enable the Council to continue to invest in bringing the housing stock up to a high standard, and also result in all tenants paying the same rent for similar properties. He informed Members that under option C  the reserves would be in a position to enable  the Council  to repay its outstanding loans in seven years.

It was moved by Councillor R D Bayliss, seconded by Councillor N J Rushton and

RESOLVED THAT:

1.    The assurance statement by the S151 Officer be noted.

2.    Cabinet approves the draft HRA Budget proposal as detailed in this report, with option C as the recommend approach for rent increases and associated appendices for consultation.

Reason for decision: To enable the Council to set a balanced Housing Revenue Account Budget for 2015/16.