Issue - meetings

The Leader presented a report which outlined the main points concerning the Housing Revenue Account including changes resulting from the Government’s rent restructuring policy.

The report proposed that rents increase in line with rent restructuring requirements of a maximum of -1.4% plus £2 per week. Applying this guideline gives an actual average rent increase for April 2010 of £1.39 per week (50 week basis) or 1.83%

Following two years of £2 per week rises to bring garage rents up to more comparable levels with others locally, it was proposed this year not to increase these rents to address the decline in demand for these garages.

Service charges are increased by a maximum of RPI. Utility recharges are increased by a maximum of £1 per week. The report also set out the budget for 2010/2011 and the revised budget for 2009/2010.

Recommended:

That Council:

i)              approve the Housing Revenue Account Budget for 2009/10 (revised) and 2010/11 (original).

ii)            approve the increase for dwelling rents in accordance with rent restructuring.

iii)          approve the level of increase for garage rents at zero percent.

iv)         approve the level of increase for service charges at a maximum of RPI and utility recharges as a maximum £1 per week.

Reason for Decision

The Housing Revenue Account (HRA) is a separate account that all local authorities with housing stock are required to maintain by law. An annual rent increase is required each year to comply with Government guidelines on rent restructuring.