Issue - meetings

To submit a report by the Head of Housing Services.

It was resolved to approve the following –

·                The rent increase of 2.7% on all general rent units in line with the Welsh Government rent policy on collection over 51 weeks.

·                An increase of £1.00 per week for the rent of all garages.

·                That the service charges costs as noted in section 6.3 of the report be applied to all tenants who receive the relevant services.

·                The administration of the Rent Support Scheme – a local scheme to support tenants who are in financial difficulty.

·                That a letter be written to Welsh Government stating that the increase in rents is insufficient to enable the HRA to finance the increased costs as a result of additional employer NI contributions following the Budget announcement, WHQS2023 standards and building cost inflation.

The report of the Head of Housing Service seeking the Executive’s approval for increases to rent and housing service charges for 2025/26 was presented.

The report was presented by Councillor Robin Williams, Deputy Leader and Portfolio Member for Finance and Housing who reported that Welsh Government has announced an increase of up to 2.7% in social rent levels for 2025/26. The charges for services that the Authority provides during 2025/26 are based on actual costs incurred during 2023/24 and are shared equally among tenants and leaseholders utilising the services. As the Welsh Government Rent Policy does not provide any guidance on how to increase garage rent, the Council is therefore proposing to increase the garage rent by 10% or £1.00 per week to £11.02 per week. This will generate an income of £290k after deducting empty garages and will be used to create a strategic plan for the garages. Councillor Robin Williams referred to the Council’s garage rent charges as being significantly lower than the charges for container hire. He further highlighted that it is also proposed that representations be made by letter to Welsh Government to the effect that the annual rent uplift is not sufficient to enable the HRA to finance increased costs as a result of additional employer NI contributions announced in the October Budget, new WHQS 2023 standards and building cost inflation.

The Head of Housing Services supported the Portfolio Member in saying that the maximum 2.7% rent increases for 2025/26 allowed by Welsh Government Rent Policy is not enough to cover additional costs and expectations. Applying the 2.7% increase will lead to an increase of between £2.20 and £3.98 per week for all tenants. However, 2,931 of the Council’s tenants (74.5%) will face no additional hardship because of the rent increase and service charges as they are in receipt of full or part Housing Benefit or Universal Credit. The same 2.7% increase will be applied also to the Council’s 37 intermediate rent properties.

The Director of Function (Resources)/Section 15 Officer advised that Welsh Government’s five year rent policy ends at the end of 2025/26 and that the eleven treasurers of the stock retaining councils in Wales have entered into discussions with the Welsh Government officials who are leading on the new policy to raise concerns about rent levels being insufficient to cover the increased costs facing the HRA in 2025/26 and beyond. Welsh Government will be consulting on a new rent policy in the New Year and the Council as a stock retaining council will be working with Welsh Government on that process. One suggestion being made is that the Consumer Price Index should be replaced in the formula for determining rent increases by a measure of inflation that more accurately reflects the cost increases which the housing sector is facing. While it is accepted that social housing needs to be affordable for tenants, councils needs to ensure that the HRA remains financially viable.

The Chair in saying that he had taken the opportunity to  ...  view the full minutes text for item 6