Issue - meetings

To consider a report by Councillor Julian Thompson-Hill, Lead Member for Finance and Assets (copy enclosed) seeking approval for the proposed rent increase and the introduction of service charges and to approve the Housing Revenue Account Capital and Revenue Budgets for 2015/16.

RESOLVED that –

(a)       the Housing Revenue Account Budget for 2015/16 (Appendix 1 to the report) and the Housing Stock Business Plan (Appendix 2 to the report) be adopted;

(b)       rents for Council dwellings be increased in accordance with the Housing (Wales) Act 2014 to an average weekly rent of £74.93 with effect from Monday 6 April 2015;

(c)        rents for Council garages be increased in line with the increase in rents for Council dwellings;

(d)       that fixed average service charges of £1.99 per week are introduced where applicable in line with the Housing (Wales) Act 2014, and

(e)       a review of garage sites be undertaken in 2015/16 as part of the Asset Management Strategy, the outcomes of the review to be reported back to Cabinet when it is completed and by no later than 31 December 2015 in any event.

Councillor Julian Thompson-Hill presented the report seeking approval of the proposed rent increase and introduction of service charges, and approval of the Housing Revenue Account Capital and Revenue Budgets for 2015/16.  The report also included reference to the Council’s exit from the HRAS system in April 2015 and Councillor Hugh Irving was pleased to report on the positive engagement of the four tenant representatives on the HRAS Working Group and their valuable contribution to that process.

Councillor Thompson-Hill guided members through the budget figures which had been calculated taking into account the new rent policy, de-pooling of service charges, mechanism for uplifting rents and the introduction of a fixed service charge where applicable.  The Service Charge Officer reported that a variable service charge had been initially recommended but because 90% of tenants were on fixed term annual contracts it had been more appropriate to introduce a fixed term service charge and pass the subsequent savings onto the tenants.

During consideration of the report the following issues were raised –

·        Councillor Huw Jones was keen to ensure that the planned review of council garages was undertaken – it was agreed to include the review in the resolution

·        it was highlighted that some council garages were not being used appropriately and officers provided assurances that action would be taken against those using council garages against terms of tenancy

·        an explanation was provided regarding the application of the criteria for target rents with steps being taken to gradually increase rents in order to meet Welsh Government target rent figures for each separate property by 2015/16

·        there was some dissatisfaction about the Welsh Government’s calculation of average rents which did not take into account prosperity within different areas but it was accepted that this element was outside of the Council’s control

·        members were pleased to note that an element of new build had been factored into the Housing Stock Business Plan which would provide good quality accommodation for Denbighshire residents – the need to publicise this issue as a good news story was reiterated

·        officers confirmed there was no reliance on Right to Buy sales as a funding source for the Housing Stock Business Plan with this element having significantly reduced over the years to just one sale forecast per annum.

RESOLVED that –

(a)       the Housing Revenue Account Budget for 2015/16 (Appendix 1 to the report) and the Housing Stock Business Plan (Appendix 2 to the report) be adopted;

(b)       rents for Council dwellings be increased in accordance with the Housing (Wales) Act 2014 to an average weekly rent of £74.93 with effect from Monday 6 April 2015;

(c)        rents for Council garages be increased in line with the increase in rents for Council dwellings;

(d)       that fixed average service charges of £1.99 per week are introduced where applicable in line with the Housing (Wales) Act 2014, and

(e)       a review of garage sites be undertaken in 2015/16 as part of the Asset Management Strategy, the outcomes of the review to be reported back to Cabinet when it is completed and by no later than 31 December 2015 in any event.

At this juncture (11.40 a.m.) the meeting adjourned for a refreshment break.