Issue - meetings

This report asks the Executive to consider the rent guidelines issued by the Department for Communities and Local Government (CLG) for 2011/12.

RESOLVED: (i)         That the current system, whereby council home rent levels are effectively set by central government, be noted.

                        (ii)        That Officers be requested to progress plans which would allow the Council to take more direct control of housing revenue decisions, including rent levels.

REASON:      To enable the Council to set rent levels that take account of tenants’ ability to pay, and to use rent revenues to benefit York residents.

(ii) That Option 1 be approved, with the average rent increases of 6.4%.

REASON:      To ensure a balanced Housing Revenue Account.

Members considered a report which asked them to consider the 2011/12 rent guidelines issued by the Department for Communities and Local Government (CLG).

The CLG had proposed a guideline rent increase of 6.5%.  Taking into account the rent calculations on individual properties and the impact of moving all rents towards the target rent, this would result in an actual average increase of 6.4% in council rents.  Failure to follow the guideline increase would result in withdrawal of some of the government’s housing subsidy.

It was recommended that rents be increased in line with government guidance (Option 1), in order to match the assumed level of the Housing Revenue Account (HRA) subsidy calculation and HRA budget.  Implementing a lower rent increase (Option 2) would mean either extending the date for rent convergence beyond 2015/16 or making higher increases in future years.

RESOLVED: (i)         That the current system, whereby council home rent levels are effectively set by central government, be noted.

                        (ii)        That Officers be requested to progress plans which would allow the Council to take more direct control of housing revenue decisions, including rent levels.¹

REASON:      To enable the Council to set rent levels that take account of tenants’ ability to pay, and to use rent revenues to benefit York residents.

(ii) That Option 1 be approved, with the average rent increases of 6.4%.²

REASON:      To ensure a balanced Housing Revenue Account.