Issue - meetings

Cabinet Member: Cabinet Member for Homes & Gateway Services, Councillor Jane Avis

Officer: Executive Director Health, Wellbeing & Adults, Guy Van Dichele

Key decision: no

The Cabinet Member for Homes & Gateway Services informed Members that the report proposed a policy which aimed to clarify and codify existing practice within the council's housing department and ensure compliance with the rent standards set by the government.

Members were informed, as a means of background, that the rent standard had been revised in 2020 which had set social housing rents at Consumer Price Index, plus 1%. This had replaced the 2016 rent standard which had reduced social housing rents by 1% over a four year period.

It was noted that work on developing the Housing Strategy had been put on hold due to covid-19 and staff being redeployed to support other priority areas. The proposed Policy, the Cabinet Member noted, would require Council approval and, if approved, would form part of the Housing and Homelessness Strategy which was being developed.

The Cabinet Member noted that at paragraph 5.2 of the report it mentioned that the council had developed and purchased 95 homes for affordable rent but that existing social rented properties had not been converted to affordable rent. It was stated that no further conversions from existing social rented homes to affordable tenure were allowable.

Ozay Ali, Interim Director for Homes & Social Investment informed Members that officers have reviewed the council’s rent policies to ensure they reflected guidance and best practice in the development of the proposed Policy. It was stated that compliance with government guidance on rents would support the council in delivering more homes in the future with it being possible to purchase up to 190 homes for the affordable homes programme. The Interim Director advised Members that the proposed Policy ensured compliance with government guidance, would enable the council to develop affordable housing and maintain current housing at rents which reflected best practice.

The Cabinet Member for Resources & Financial Governance welcomed the clarification the proposed Policy provided but queried whether an assessment had been undertaken on the council’s ability to collect rent due to the challenging financial climate. In response, the Interim Director confirmed that modelling had not been possible on individual levels but confirmed that the proposed rent levels were within government guidelines for housing allowances support and local housing caps. The Policy sought to bring rent levels in line with the sector and it was not anticipated that there would be an increase in rent arrears as a result.

The Cabinet Member welcomed the question and stated that the Policy followed four years of 1% reductions which over 30 to 40 years would have impacted the Housing Revenue Account by around £200,000. Whilst it was recognised that a continued reduction in rents would be welcomed by residents it would make ensuring properties were maintained appropriately more challenging. The rise in rents would enable the council to maintain services which residents had come to expect and following discussions with resident groups it was noted that residents were satisfied with the proposal. The Interim Director further informed Members that the Policy would enable the council  ...  view the full minutes text for item 18