Issue - meetings

To consider a report of the Corporate Director for Place Management & Regeneration.

The report outlines the Government policy on HRA rents and the consultation to set the policy beyond 2020.

The Commission is recommended to comment on and note the report.

Officer contact: Andy Kippax on 0161 474 4319 or email: andy.kippax@stockport.gov.uk

The Corporate Director for Place Management & Regeneration submitted a report (copies of which had been circulated) outlining the Government’s approach to HRA rents, specifically that it would continue to reduce council and housing association rents by 1% a year for the next three years, and the proposed approach to consultation in setting a rent policy for the period beyond 2020.

The following comments were made:-

·         The decision to change the annual guideline increase from RPI + ½% to CPI + 1% from April 2015, and end the allowance for convergence, and, secondly the decision to reduce council rents by 1% a year from April 2016 until March 2020 would result in an accumulated loss of income for the period 2016/17–2020/21 of approximately £19m.

·         Should the current rent policy continue beyond 2020, the losses would accumulate to around £216m over the period of the business plan.

·         The Council’s response to the consultation was based on any future rent setting policy having, as a minimum, an agreement to increase rents at CPI plus one per cent which would allow Stockport Homes to continue to finance its business plan, continue to build new homes and maintain the housing stock.

RESOLVED – That the report be noted.