Issue - meetings

To consider a report of the Cabinet Member for Sustainable Stockport.

The report provides details of a draft Rent Strategy for Council Dwellings for the period 2020-2025.  The purposes of the strategy are:

•        To put rent setting into a local and national context;

•        To set a strategic framework for setting rents over the next five years which is in line with the Government settlement on rents from 1st April 2020 with an aim to set the rents to the limit of CPI + 1% each year for the five year period subject to annual review.

The Cabinet is recommended to endorse the Housing Revenue Account (HRA) Rent Strategy 2020 – 2025.

Officer contact: Andy Kippax, 0161-474-4319, andy.kippax@stockport.gov.uk

The Cabinet Member for Sustainable Stockport submitted a report (copies of which had been circulated) inviting the Cabinet to consider the Rent Strategy for 2020-2025 for Council dwellings that sought to set a strategic framework for setting rents over the next five years, taking into account local and national requirements and pressures.

The Cabinet Member outlined the pressure that had been placed on the delivery of the HRA Business Plan caused by the Government’s change in policy to require rent reductions over the preceding 5 year, resulting in a £19m reduction in expected income, equating to over £217m over the 30 year HRA business plan, placing significant pressure on the capital investment programme in particular. It was hoped that this Strategy would provide greater certainty for future investments.

The Strategy had been subject to consultation with tenants who had provided constructive and supportive feedback.

RESOLVED – That the Housing Revenue Account (HRA) Rent Strategy 2020 – 2025 be endorsed.

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

The aim of the HRA Rent Strategy 2020-25 is to set a clear framework for rent setting over the next five years. It will highlight the key drivers that are intrinsic to decision making, and it will ensure that residents are consulted in a transparent manner which will enable them to influence this Strategy and understand the value-for-money and key investment that they can expect from their rent.

The Scrutiny Committee is asked to consider and note the HRA Rent Strategy 2020 -2025.

Officer contact: Andy Kippax, telephone: 0161 474 4319; email: andy.kippax@stockport.gov.uk

The Corporate Director for Place Management & Regeneration submitted a report (copies of which had been circulated) providing a clear framework for rent setting over the next five years. The HRA Rent Strategy 2020-25 highlighted the key drivers that were intrinsic to decision making, and it would ensure that residents were consulted in a transparent manner which would enable them to influence the Strategy and understand the value-for-money and key investment that they could expect from their rent.

The Cabinet Member for Sustainable Stockport (Councillor Sheila Bailey) attended the meeting to respond to councillors’ questions.

The following comments were made/ issues raised:-

·         It was noted that rent levels in Stockport were significantly lower than those elsewhere in Greater Manchester.  It was stated that this was a legacy of historic rent policies and that it was now very difficult to raise rent levels to a point where they would be commensurate with those levied elsewhere.

·         It was queried whether the low rent levels in Stockport encouraged tenants from outside the Borough to apply.  However, it was stated that Stockport had a robust Housing Allocations Policy that included criteria relating to a ‘local connection’.

·         It was stated that as a result of the high market rent prices and private sale prices in the Borough, Stockport now qualified for grants from Home England to allow the building of new homes for social rent.

·         The level of engagement by tenants in the consultation events held on the proposed Rent Strategy was disappointing.

RESOLVED – That the report be noted.