Issue - meetings

Raising Rent on Vacant Council Homes to Target Rents

Meeting: 23/05/2016 - Decision Session - Executive Member for Finance and Performance (Item 44)

44 Target Rent Policy pdf icon PDF 189 KB

This report proposes to change the current policy and to increase the rent payable on a property to target rent when it becomes void and sets out the impact of the change.

Decision:

Resolved:  That Option 1,  to increase the rent payable to Target Rent on a property when it becomes void, be approved.

 

Reason: To maximise the council’s income.

 

Minutes:

The Executive Member considered a report that proposed to change the current Target Rent Policy and to increase the rent on a property when it becomes void.

 

Officers gave an update and confirmed that no existing tenancies would be affected by the change.

 

The Executive Member noted that the government had given social housing landlords the freedom to increase the rent on empty homes and, as part of the 2015 Summer Budget, rents in social housing would be reduced by 1% a year for four years resulting in a real term reduction of 12% in rental income.  It was confirmed  that the average distance to target rent was £1.05 per week with more than 90% of properties being less than £1.50 per week below target rent.

 

Resolved:  That Option 1,  to increase the rent payable to Target Rent on a property when it becomes void, be approved.

 

Reason:     To maximise the council’s income.

 


 

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