Decision - Rent policy for new build council homes

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Decision details

Rent policy for new build council homes

Decision Maker: Housing & New Homes Committee

Decision status: Recommendations Approved

Is Key decision?: No

Is subject to call in?: Yes


Report proposing a rent policy for new build council homes as requested by Housing & New Homes Committee at its meeting on 14 June 2017


(1)            That Housing and New Homes Committee agrees the proposed principles for a rent setting policy for new council homes as set out in paragraph 3.27 of this report, inclusive of amended bullet points 2, 4 & 5 as follows:  


·       Rents for new build council homes shouldbe set above Target Social Rents to reflect their take into consideration the high quality, amenities, standards and energy efficiency compared to older homes built in previous decades;

·       Rental income from new homes should support an ongoing development programme to continue to build much needed new council homes for rent on council owned land. Schemes with fewer site constraints and/or free HRA land will may cross subsidise others that prove more costly to develop due to payments for General Fund land and/or greater site constraints and pressures;


·       The amount of HRA subsidyfor new homes should be minimised over the programme as a whole, with subsidy considerations and calculations taking into account the costs and projected income over the whole 60 year period;

(2)            That Housing and New Homes Committee approves a rent policy for new build homes as set out in paragraph 3.28 of this report as amended below.


3.28 Proposed rent policy

Rents for proposed new schemes of new build council homes will be modelled as below, with the option of a mix of rents to achieve a spread of affordability on any one scheme to be available:

·        Affordable rents capped at LGA rates

·       37.5% Living Wage Rent

·       27.5% Living Wage Rent and

·       Target social rent levels


For each scheme officers will recommend one of these three four as appropriate for that scheme and based on the rent principles above, for housing and new homes committee to agree the rents when it approves the scheme.



Report author: Sam Smith, Tracy John

Publication date: 15/11/2017

Date of decision: 15/11/2017

Decided at meeting: 15/11/2017 - Housing & New Homes Committee

Effective from: 23/11/2017

Accompanying Documents:


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