Agenda item

To consider a report by Councillor Julian Thompson-Hill, Lead Member for Finance, Performance and Strategic Assets (copy enclosed) seeking Cabinet approval for the Denbighshire Housing annual rent increase, the Housing Revenue Account Capital and Revenue Budgets for 2019/20 and Housing Stock Business Plan.

RESOLVED that –

(a)       the Housing Revenue Account Budget for 2019/20 (Appendix 1 to the report) and the Housing Stock Business Plan (Appendix 2 to the report) be adopted, and

(b)       rents for Council dwellings be increased in accordance with the Welsh Government Policy for Social Housing Rents to an average weekly rent of £89.77 with effect from Monday 1 April 2019.

Councillor Julian Thompson-Hill presented the report seeking Cabinet approval for the Denbighshire Housing annual rent increase, the Housing Revenue Account Capital and Revenue Budgets for 2019/20 and Housing Stock Business Plan.

Councillor Thompson-Hill guided members through the budget figures and income level assumptions which had been calculated taking into account the Welsh Government Rent Policy for social housing rents and mechanism for uplifting rents.  The uplift for 2019/20 was 2.4% and would leave 40% of homes at target rent levels.  The current policy ended in 2018/19 and the increase for 2019/20 was a one year interim policy with an announcement from Welsh Government on future rent policy expected in April 2019.  The annual review of the Housing Stock Business Plan showed it remained robust and financially viable and there were sufficient resources to support the management and supervision of the housing service and the investment needs of the stock.

During consideration of the report the following issues were discussed –

·         the requirement to include bad debt provision was explained together with the impact of Universal Credit and the Council’s proactive approach in that regard and providing financial advice and support to tenants – it was noted that rent collection rates remained high and arrears were amongst the lowest in Wales

·         in terms of the loss of income on Voids it was acknowledged that time was taken for completion of works to ensure the empty property was of a high standard – benefits included minimum disruption to future tenants and a high quality home with less repairs costs going forward which was appreciated by tenants

·         it was noted that garages were not dealt with in the report because they were not subject to the Welsh Government Rent Policy and would be reviewed by the Head of Service under delegated authority – historically garage rents tended to be increased in line with housing rents.  Councillor Huw Hilditch-Roberts felt there would be merit for Cabinet to set garage rent levels when setting housing rent levels.  The review of garages was nearing completion and the Leader asked that members be informed on conclusion of the review which would also be an opportune time to consider the point raised by Councillor Hilditch-Roberts

·         it was accepted that the Denbighshire Tenants and Residents Federation could be more representative however a good relationship existed with tenants and there was a detailed engagement plan to gain feedback and inform future plans

·         it was appreciated that any increase in rent could have an impact on some tenants’ ability to meet their financial commitments and officers would continue to help customers manage their finances effectively and maximise their income.  The need to ensure affordability and value for money was acknowledged and initial feedback from the latest STAR survey indicated 89% of tenants considered their home provided value for money.

RESOLVED that –

(a)       the Housing Revenue Account Budget for 2019/20 (Appendix 1 to the report) and the Housing Stock Business Plan (Appendix 2 to the report) be adopted, and

(b)       rents for Council dwellings be increased in accordance with the Welsh Government Policy for Social Housing Rents to an average weekly rent of £89.77 with effect from Monday 1 April 2019.