The Cabinet Member for Housing presented a report on the Housing Revenue Account (HRA) estimates, rents and other related charges for 2013/14.
The Cabinet Member advised that the proposals were underpinned by the investment and service delivery objectives set out in the HRA Business Plan and included planned reductions in expenditure to enable the setting of a balanced revenue budget and maintaining of prudent reserves. The Cabinet Member explained that while the proposed increase to rent levels was based on Government’s formula rent level policy and was largely influenced by the rate of inflation, the overall package of measures would enable the Council to continue to provide value for money services to its residents. In that respect, the Cabinet Member pointed out that those tenants currently paying service charges in addition to their rent would have an average total increase equal to 3.15% (3.7% in 2012/13), which compared favourably to most other local authorities.
The Cabinet Member confirmed that the budget proposals took into account the likely detrimental impact of the Government’s welfare reforms on local residents and referred to the longer-term initiatives which would be supported via the HRA, including maintaining the Council’s position as the leading provider of new-build, affordable housing in the country.
Cabinet agreed:
(i) The HRA estimates for 2013/14 as detailed in Appendix 6 to the report;
(ii) An overall average Council dwelling rent increase of 4.96% in accordance with the Central Government formula, equivalent to £4.21 per week and comprising the following:
· New build and acquired Council homes - rents set at 50% or 65% of the Local Housing Allowance for the Borough.
· Other houses - 5.46% average increase.
· Other flats - 4.36% average increase.
(iii) A decrease to tenant service charges of 2.38% (£0.66 per week);
(iv) An increase to communal heating and hot water charges of 7% (£0.97 per week);
(v) No increase to the garage rent levels set by Cabinet under Minute 4 (22 May 2012);
(vi) That rents for commercial properties increase in line with lease agreements; and
(vii) The above changes taking effect from 1 April 2013.