Issue - meetings

Rent de-pooling

Meeting: 20/10/2014 - The Executive (Item 7)

7 Rent de-pooling and Service Charges pdf icon PDF 261 KB

To submit a report by the Head of Housing Services.

Additional documents:

Decision:

RESOLVED :-

 

  To approve the revised Rent Policy for Social Housing;

 

  To approve the policy rents for 2014/15 as outlined paragraph 2.3 of the report, to be used as the basis for calculating policy rents for 2015/16;

 

  To approve for the purpose of de-pooling that the current rent levels be retained;

 

  In order to increase the move towards achievement of policy rent levels, it was approved that these levels be applied to any property becoming void and then relet, effective from 1st April, 2015;

 

  That the de-pooling exercise takes place with effect from April, 2015;

 

  That service charges be applied to leaseholders and freeholders of former Council properties sold under the Right to Buy in accordance with the terms of the transfer;

 

  That formal consultation of 6 weeks be carried out with tenants and leaseholders;

 

  That an update report be presented to the Executive in February 2015 on proposed rent increases for 2015/16.

Minutes:

Submitted – a report by the Head of Housing Services in relation to the above.

 

The Financial Systems Manager reported that the Minister for Housing and Regeneration decided that the new rent policy would be implemented by Registered Social Landlords from April 2014 and for Local Authorities from April 2015.  Where a social landlord pools rents and service charges, as in the case in Anglesey, they are now required to start the process of disaggregating service charges from rent and to start this with effect from  April 2015.

 

The formula for annual rent increases has been set by the WG for the next four financial years commencing in 2015/16.  The Council’s current rent levels are significantly below the intended policy target rents, harmonisation will require that council housing rents which currently fall well below the policy target rents will be subject to this formula rent increase. 

 

It was further noted that like many local authorities, the Council has included the cost of providing services to shared or communal areas in the rent that all tenants pay, irrespective of whether all tenants benefit from the services being provided.  De-pooling involves separating out these costs and charging them as a service charge.

 

RESOLVED :-

 

·           To approve the revised Rent Policy for Social Housing;

 

·           To approve the policy rents for 2014/15 as outlined paragraph 2.3 of the report, to be used as the basis for calculating policy rents for 2015/16;

 

·           To approve for the purpose of de-pooling that the current rent levels be retained;

 

·           In order to increase the move towards achievement of policy rent levels, it was approved that these levels be applied to any property becoming void and then re-let, effective from 1st April, 2015;

 

·           That the de-pooling exercise takes place with effect from April, 2015;

 

·           That service charges be applied to leaseholders and freeholders of former Council properties sold under the Right to Buy in accordance with the terms of the transfer;

 

·           That formal consultation of 6 weeks be carried out with tenants and leaseholders;

 

·           That an update report be presented to the Executive in February 2015 on proposed rent increases for 2015/16.