Issue - meetings

Purpose of Report

To provide the Executive with an opportunity to seek approval of the revised rents for council housing accommodation in 2019/20.

Decision

That the Executive recommends to Council for approval:

(1)       The basis of rent calculation for charges to individual Council house rents as set out in paragraph 6 of the report, which represents a decrease in the average 52 week council house net rent in 2019/20 of 1% equating to a £0.68 per week loss for social housing rents and £1.08 per week loss for affordable rents per property.

(2)       A 3% increase in garage rents for 2019/20 in accordance with the proposal in paragraph 6.1 of the report.

Alternative Options Considered and Rejected

None.

Reason for Decision

The Welfare Reform and Work Act 2016 determined that all social and affordable rents, inclusive of supported housing, be reduced by 1% year on year between 2016/17 and 2019/20. For the City of Lincoln Council this would result in a further reduction of an average weekly net social housing rent, over 52 weeks, from £68.44 in 2018/19 to £67.76 per week for 2019/20, equating to an average loss of income per property of £0.68 per week over 52 weeks.

There were currently 129 properties charged at an affordable rent which was higher than social housing rent. The reduction, on the average weekly net rent, over 52 weeks, would result in a reduction from £108.71 in 2018/19 to £107.63 per week over 52 weeks.

The restriction on house rents did not apply to garage rents. It was therefore proposed that garage rents would increase by 3% in line with the authority’s general fees and charges increase.

Work was ongoing to both increase garage lettings and appraise low demand sites for their redevelopment potential.

It was noted that no comments had been received from the Lincoln Tenants’ Panel on the proposals for Council House and Garage rents.