Agenda item

To submit a report by the Head of Housing.

The report of the Head of Housing Services seeking the Executive’s approval for increases in rent and service charges for 2020/21 was presented for consideration.

The Portfolio Member for Housing and Supporting Communities reported that Welsh Government had on 18 December, 2019 confirmed that it had agreed the Welsh Government Policy for Social Housing Rents for 2020/21.The Affordable Housing Supply Review has recommended that a 5 year rent policy be implemented to provide stability and certainty for tenants and it is recommended also that landlords consider value for money alongside affordability. The formula for the annual rent increases will be set at the consumer price index (CPI) of 1.7% as was the value in September, 2019 plus 1%. As the Council’s current rent levels are significantly below the intended policy target rents, to achieve convergence with other social housing providers will require that Council housing rents (which currently fall below the policy target rents) are subject to an additional weekly increase of up to a maximum of £2 above inflationary rent increase.

The Portfolio Member for Housing and Supporting Communities highlighted that all local authorities as instructed by the Welsh Government are required to implement the Rent Policy – not to do so would ultimately mean a loss of income for the Authority and affect the services provided. It would also undermine the HRA Business Plan and potentially leave the Authority subject to intervention by Welsh Government. Rejecting this policy could also jeopardise the annual Major Repairs allowance income of £2.66m received from Welsh Government as it could be seen as the Authority not maximising its income generating opportunities.

In response to questions about affordability and potential impact on tenants’ ability to pay, the Executive was advised that the proposed increase is lower than in previous years. Additionally, Housing Services have three Financial Inclusion Officers who are available to provide information, advice and support to tenants on financial inclusion issues with a strong focus placed on increasing financial capability and budgeting skills to manage their finances and to access mainstream financial services. Links have also been developed to improve working practices at a strategic and operational level with both internal and external partners such as support and advice organisations, charities and utilities.

It was resolved –

•           To approve the rent increase in line with the Welsh Government target rent based on collection over 51 weeks.

•           That all rents below target of between £0.41 - £4.47 be increased by 2.7% plus an amount up to the maximum of £2.00 per week to bring to target rent towards convergence.

•           That all rents below target rent of between £3.87 - £5.01 be increased by 2.7% plus £2.00 per week.

•           That the rent for the 3 properties that are above target rent should remain at their current levels.

•           That the rent of all garages be increased by 22p per week.

•           That the service charges costs as noted within section 3.3 of the report be applied to all tenants who receive the relevant services.