Issue - items at meetings - Rent Policy for new council homes

Report of Interim Executive Director for Housing, Neighbourhoods & Communities

RECOMMENDATIONS:

The Housing Committee:

2.1      Noted the current Rent Policy.

2.2      Noted that a full Equalities Impact Assessment will be undertaken on the implementation of the policy to date.

2.3      Approved the options to revise the Rent Policy for additional council homes that maximises the number of council homes replaced at social or living wage rents. The options for the Rent Policy to be kept under review.

46.1    The Committee considered the report presented by Sam Smith and Diane Hughes.

46.2    At Housing & New Homes Committee meeting on 15 November 2017 it a Rent Policy for new council homes was agreed. Members asked that this policy come back to Housing Committee to be reviewed.

46.3    The priorities and work plan for the Housing Committee and service for the next four years, 2019 to 2023, agreed at Housing Committee on 18 September 2019, includes to review the rent policy to maximise the number of council homes replaced at social or living wage rents. The report outlines the current Rent Policy which applies to all new council homes including new build, conversion and properties purchased under the Home Purchase Policy and how in future the rent policy may seek to maximise the number of council homes replaced at social or living wage rents.

46.3    Councillor Peter Atkinson felt that the issue was sensitive, and rents should be set at the lowest possible. It was noted that energy bills are likely to be significantly lower due to sustainability measures in new build schemes. Councillor Atkinson approved of the affordability and was informed that the rent policy is to maximise the number of lowest rents.

46.4    Councillor Gibson welcomed the report and noted that affordability is very important for tenants and the rent policy should enshrine the pledge to increase lower rents across the housing stock. The living wage rents were best. It was felt that some tenants already subsidise other tenants, that mixed communities are positive, and that case-by-case basis was the best way forward.

46.5    Councillor Mary Mears raised concerns on how the Housing Revenue Account (HRA), which is made up of tenant’s rents, is spent. It was noted that there are restrictions within the HRA that would not allow cross subsidising from market rented properties. Councillor Mears was informed that the best way forward was on a case-by-case basis.

46.6    Resolved:

The Housing Committee:

2.1      Noted the current Rent Policy.

2.2      Noted that a full Equalities Impact Assessment will be undertaken on the implementation of the policy to date.

2.3      Approved the options to revise the Rent Policy for additional council homes that maximises the number of council homes replaced at social or living wage rents. The options for the Rent Policy to be kept under review.