Decision details

To agree the basis of rent calculation for changes to individual Council houses and garage rent prior to seeking approval of Council.

Purpose of Report

To propose that the Council be requested to increase the council house rents within the terms of the Government’s Rent Policy for social housing (April 2020 updated 15 November 2021) and approve the introduction of revised rents from Monday 4 April 2022.

To propose that the Council be requested to approve an increase of 3% on Council garage rents for 2022/23. 

Decision

(1)       That the Council be recommended to approve the basis of rent calculation for changes to individual Council house rents, as set out in paragraph 6 of the report, which represented an increase in the average calculated 52-week council house net rent in 2022/23 of 3.6% for social housing rents (an average increase of £2.57 per week) and for affordable rents (an average increase £4.06 per week), which was in accordance with Government policy.

(2)       That the Council be recommended to increase garage rents for 2022/23, as set out in paragraph 6.1 of the report, by 3%.

Alternative Options Considered and Rejected

As detailed in the report.

Reasons for the Decision

In October 2017, the government had announced its long-term rent policy, whereby annual rent increases on both social and affordable rent properties of up to the level of Consumer Price Index, plus 1% from 1 April 2020.  Based on the Consumer Price Index of 3.1% in September 2021, an increase up to 4.1% was available.  Between 2016/17 – 2019/20, the Council had been required by government policy to reduce rents by 1% year on year. 

After consideration of the impact on the Council’s tenants and other pressures of the wider economic circumstances, it was agreed to apply a lower level of rental increase of 3.6% with effect from Monday 4 April 2022.  As a result, the budgeted rental income for 2022/23 would be £29,996,080.

An increase in garage rents of 3% was proposed, which align with the Council’s fees and charges increase for 2022/23.  This would result in an average increase in the rent charged to £8.24 per week for 2022/23 (based on a calculated 52-week charge period), an average increase of £0.24 per week.

The proposed changes had been considered and supported by the Lincoln Tenants Panel.