The Cabinet Member for Housing presented a report on the Housing Revenue Account (HRA) estimates, rents and other related charges for 2012/13.
The Cabinet Member advised that Government policy on the formula rent level was dictated by the rate of inflation (5.6%) and other additional factors, and if the Council had followed that approach the average rent increase for 2012/13 would have been 7.98% (or £6.37 per week). However, mindful of the impact on Council tenants of any level of increase in the current economic climate the Cabinet Member confirmed that an average increase of 6.8% (£5.38 per week) was proposed for 2012/13, which represented one of, if not the lowest increase by any London borough based on the information currently available.
The Cabinet Member referred to the proposed changes to other HRA-related services, which included a 10.7% (£1.91 per week) reduction to tenant service charges (excluding concierge services), and outlined the main proposals within the HRA Business Plan, which would be brought to Cabinet at its next meeting, for progressing the major estate renewal and new Council house build programmes. It was noted that those programmes would be supported by changes to the council housing finance regime effective from 1 April 2012 as well as other planned reductions in expenditure, all of which would enable the Council to set a balanced revenue budget and maintain prudent reserves.
Cabinet agreed:
(i) The HRA estimates for 2012/2013, as set out in Appendix 1 to the report and, in doing so:
a. An overall average Council dwelling rent increase of 6.8%, equivalent to £5.37 per week, which comprised the following
· New build Council homes - rents set at 50% of the appropriate Local Housing Allowance level
· Other houses - 7.1% average increase
· Other flats - 6.3% average increase
b. A decrease to tenant service charges (excluding concierges) of 10.7% (£1.91 per week)
c. An increase in the Concierges charge of 9.6% (£1.02 per week)
d. No increase to communal heating and hot water charges
e. That rents for commercial properties increase in line with lease agreements
(ii) The above changes taking effect from 2 April 2012.