Agenda item

As detailed in the recommendations.

The Chief Officer (Community and Enterprise) introduced the Housing Revenue Account (HRA) Rent Policy for 2015/16 which sought approval for a phased implementation of service charges over three years starting in 2016/17, beginning with a consultation process with tenants, leaseholders and other stakeholders.

The new rent policy was an opportunity to resolve anomalies and to harmonise rents in Flintshire.  The Council had over 400 different rents from a combination of systems used by previous Councils, prior to amalgamation.  This had resulted in a disparity in rent for similar properties across Flintshire. 

The target rent bands for each landlord were based on a consistent set of principles and a common methodology across Wales.  The rent policy set out the target rent band for each landlord and landlords would be required to work towards achieving weekly rent levels that fell within the scope of those bands.  The banding was set at 5% above or below the target rent.

Where a landlord’s weekly rent was higher than the target rent band, the landlord was expected to increase its rents more slowly e.g. Consumer Price Index (CPI) plus 1.0%, until the average weekly rent fell within the target rent band.  Where a landlord’s weekly rent was lower than the target rent band, transitional protection would apply to tenants.  In any year a landlord would not be permitted to increase the rent for any individual tenant by more than £2 per week in addition to the agreed average annual rate of rent increases for the sector as a whole.

It was proposed that the current guideline rent of £74.77 would move towards the benchmark rent of £82.90 on a phased transitional basis where no tenant would see rent increases above CPI plus 1.5%, plus £2 per year. 

The elements to consider for the implementation of the rent policy were explained in full detail, in particular the target rents that were in the Welsh Government (WG) guidelines and service charges. 

It was proposed that service charges would be introduced on a phased basis for existing tenants over 3 years from 2016.  The total cost of each chargeable service would be shared equally amongst all tenants receiving that type of service.  For example, all flats that received cleaning would be charged the same, regardless of how much the cleaning cost in each building.

It was also proposed that from April 2015, that when a property became vacant, the rent for the new tenant would automatically be set at target rent and charging for services be implemented where appropriate.

The Leader and Cabinet Member for Finance said the report had been shared informally with Housing Overview and Scrutiny Committee Members however due to timing and the deadline for a response to WG, the report had not been formally submitted to the Committee.

RESOLVED:

That the revised rent policy be approved as described below:

• The implementation of a single rent for each type and size of property as per the rent reform guidance
• Rent levels set within the target rent band to support a policy of maximising affordability
• New tenancies are let at target rent from April 2015, with full service charge implementation
• To charge for services as a single average rate for each element

·         To implement service charges for existing tenants on a phased basis over three years from 2016 following detailed consultation