Issue - meetings

To consider a joint report of the Executive Councillors (Support & Governance) and (Thriving Economy).

The Deputy Leader of the Council (Support & Governance) (Councillor Iain Roberts) submitted a report (copies of which had been circulated) requesting the Council Meeting to set the level of rent and service charges in the Housing Revenue Account (HRA) and approve the HRA budget for 2016/17.

RESOLVED – That approval be given to:-

·         a reduction in the average social rent of 1% for dwelling rents;

·         an increase of 1.3% for rents of shared ownership properties;

·         service charge changes and increases as outlined in section 3;

·         a 0.9% increase in Carecall Charges;

·         a 0.9% increase in Warden Charges; and,

·         the Housing Revenue Account Budget for 2016/17 as set out in Appendix 1.

To consider a joint report of the Executive Councillors (Support & Governance) and (Thriving Economy)

The report recommends the rent and service charges levels for the Housing Revenue Account (HRA) in 2016/17 and provides a recommended HRA budget for 2016/17.

The Executive is asked to recommend that the Council Meeting approves:

a)    A reduction in the average social rent of 1% for dwelling rents;

b)   An increase of 1.3% for rents of shared ownership properties;

c)    Service charge changes and increases as outlined in section 3;

d)   A 0.9% increase in Carecall Charges;

e)    A 0.9% increase in Warden Charges; and,

f)     The Housing Revenue Account Budget for 2016/17 as set out in Appendix 1.

Officer Contact: Michael Cullen, 0161 474 4631, michael.cullen@stockport.gov.uk

A joint report of the Executive Councillors (Support & Governance) and (Thriving Economy) was submitted (copies of which had been circulated) inviting the Executive to consider the rent and service charges levels for the Housing Revenue Account (HRA) in 2016/17 and a recommended HRA budget for 2016/17.

Executive councillors commented on the challenges caused by recent Government announcements, in particular the requirement to reduce rents and the ending of the 30-year HRA business plan only 4 years into the agreement.

RESOLVED – That the Council Meeting be recommended to approve the following in relation to the Housing Revenue Account Budget and Rent Levels for 2016/17

·         a reduction in the average social rent of 1% for dwelling rents;

·         an increase of 1.3% for rents of shared ownership properties;

·         service charge changes and increases as outlined in section 3;

·         a 0.9% increase in Carecall Charges;

·         a 0.9% increase in Warden Charges; and,

·         the Housing Revenue Account Budget for 2016/17 as set out in Appendix 1.

To consider a joint Report of the Corporate Director for Corporate and Support Services and the Corporate Director for Place Management & Regeneration.

The report provides details of an illustrative Housing Revenue Account Budget. The Executive will be meeting on 5 January to recommend to Council an HRA budget for 2016/17, including the level of rent and service charges.  The illustrative budget is based on a number of key assumptions set out in the report regarding income from rent and service charges; expenditure commitments contained within the HRA 30 year Business Plan and Asset Management Strategy and indicative spending requirements to support inflationary pressures and identified investment priorities.

This report takes account of the HRA Rent Strategy 2012 – 2017 which was approved by the Executive on 7 January 2013 and changes by the Department for Communities and Local Government with regard rents for social housing from 2016/17.  

The Scrutiny Committee is recommended to comment on the report and the illustrative HRA Budget for 2016/17. 

Officer contact: Michael Cullen on Tel: 0161 474 4631 or email: michael.cullen@stockport.gov.uk

A representative of the Corporate Director for Place Management & Regeneration submitted a joint report of the Corporate Directors for Corporate and Support Services and Place Management & Regeneration (copies of which had been circulated) which provided details of an illustrative Housing Revenue Account Budget.  The illustrative budget was based on a number of key assumptions set out in the report regarding income from rent and service charges; expenditure commitments contained within the HRA 30 year Business Plan and Asset Management Strategy and indicative spending requirements to support inflationary pressures and identified investment priorities.

This report took account of the HRA Rent Strategy 2012 – 2017 which was approved by the Executive on 7 January 2013 and changes by the Department for Communities and Local Government with regard rents for social housing from 2016/17. 

The Executive Councillor for Thriving Economy (Councillor Patrick McAuley) attended the meeting to respond to questions from the Scrutiny Committee.

The following comments were made/ issues raised:-

·         Consultation had taken place with tenants at a Stockport Homes Customer Hub meeting which focussed on the impact of the enforced rent reduction of 1%.  It was stated that feedback from the session demonstrated concern amongst tenants about future investment in the Council’s housing stock and whether there was an opportunity to resist the imposition of the rent reduction.

·         It was queried whether Stockport Homes would be able to maintain all of their properties to the Decent Homes Standard.

·         It would be difficult for Stockport Homes to continue to provide the current range of additional services and support to tenants and the wider community.

·         Additional income was being derived through the installation of solar panels and the collection of water charges as well as year on year savings in the management budget which may help mitigate against some of the impact of the rent reduction.

·         The impact of the proposed sale of higher value Council properties was as yet unknown.

·         The Council had followed the Department for Communities and Local Government’s ‘Guidance on Rents for Social Housing’ in setting the annual rate of increase in rent levels in previous years and Stockport rent levels remained amongst the lowest in Greater Manchester.

·         In response a question in relation to proposals to charge those tenants with an income of over £30,000 a rent at market or near market levels and whether that would mitigate against losses incurred through the 1% overall reduction in rent levels, it was stated that any additional income would be payable to HM Treasury and could not be retained by the Council.

·         It was noted that the report proposed the introduction of service charges for the provision of laundry facilities for which no charge had previously been levied.  In response, it was stated that the existing laundry facilities would be improved and that a tenant who had their own facilities within their property would not be subject to the service charge.

RESOLVED – That the report and the illustrative Housing Revenue Account Budget for 2016/17 be noted.