DECISION

Housing Revenue Account

1.   Noted that, under section 23 of the Welfare Reform and Work Act the Authority must implement a rent reduction of 1% for four years starting in 2016/17, and consequently to agree an average weekly rent reduction of 1% to take effect from the first rent week of April 2017.

2.   Agreed that the average weekly tenanted service charge will increase by 2% from the first rent week in April 2017.

3.   Noted that section 80 of the Housing and Planning Act 2016 requires local authorities to charge high income social tenants an increased level of rent, (up to market rent levels).  However the government has now confirmed that this scheme (Pay to Stay) will now be voluntary for local authorities.

4.   Noted the risks to the HRA as set out in section 6, and note that the HRA budget will be presented to Cabinet in February 2017 along with updated medium-term financial projections.

In relation to Lettings

5.  Agreed to amend the quota for Band 3 lets from 10% of one, two and three bed properties to 5% of one bed / studios and two beds per annum.

Action by:

CORPORATE DIRECTOR, PLACE (A. DALVI)

CORPORATE DIRECTOR, RESOURCES (Z. COOKE)

(Finance Manager (P. Leeson)

(Senior Accountant (K. Ball)

(Interim Head of Strategy, Regeneration and Housing Options (M. Baigent)

A report was received and noted a report that provided information with regard to the 2016 Welfare Reform and Work Act including the requirement that rents on social housing properties must be reduced by 1% a year for four years from 2016/17.  In line with this legislation, the report set out the rent reduction that will be applied to the Authority’s rents in 2017/18.  The report also sought Cabinet approval of the level of the 2017/18 service charge increase for the year ahead in order for the Council to comply with its statutory duty to notify tenants.

It was also noted that the Housing and Planning Act 2016 includes the requirement for high income local authority households to be charged an increased level of rent (up to market rent). However, it was noted that the Government has since confirmed that this policy will be voluntary for local authorities. Whilst the Council must prepare proposals in January and February each year relating to income from rents and other charges, and expenditure in relation to management and maintenance of its housing stock.  A decision being required with regard to rents and service charges in January in order that statutory notice can be given to tenants prior to 1st April implementation.

Finally, concerning Lettings it was noted that the Mayor in Cabinet had agreed changes to the Allocation Scheme and the Lettings Plan for 2016/17 and 2017/18 when the Amendments to the Allocations Scheme and Lettings Plan report had been presented to Cabinet on 1st November, 2016.  However, Members had deferred the recommendation made to amend the quota for Band 3 lets from 10% of one, two and three bed properties to 5% of one bed and studios per annum for consideration at the January Cabinet meeting.

Pre-Decision Scrutiny Questions and responses were noted. The Mayor agreed the recommendations as set out in the report.

RESOLVED

Housing Revenue Account

1.   To note that, under section 23 of the Welfare Reform and Work Act the Authority must implement a rent reduction of 1% for four years starting in 2016/17, and consequently to agree an average weekly rent reduction of 1% to take effect from the first rent week of April 2017.

2.   To agree that the average weekly tenanted service charge will increase by 2% from the first rent week in April 2017.

3.   To note that section 80 of the Housing and Planning Act 2016 requires local authorities to charge high income social tenants an increased level of rent, (up to market rent levels).  However the government has now confirmed that this scheme (Pay to Stay) will now be voluntary for local authorities.

4.   To note the risks to the HRA as set out in section 6, and note that the HRA budget will be presented to Cabinet in February 2017 along with updated medium-term financial projections.

In relation to Lettings

5.   To agree to amend the quota for Band 3 lets from 10% of one, two and three bed properties to 5% of one bed / studios and two beds per annum.