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Decision details

2017/18 HOUSING REVENUE ACCOUNT AFFORDABLE RENTS

Decision Maker: Executive Councillor for Housing

Decision status: Recommendations Approved

Is Key decision?: Yes

Is subject to call in?: No

Purpose:

Approve that affordable rents are reviewed in line with rent legislation,

Decision:

CAMBRIDGE CITY COUNCIL

Record of Executive Decision

 

2017/18 HOUSING REVENUE ACCOUNT AFFORDABLE RENTS

SPECIAL URGENCY DECISION

 

Decision of:

Councillor Price, Executive Councillor for Housing

Reference:

17/URGENCY/HS/1

Date of decision:                

20 February 2017

Recorded on: 

21 February 2017

Decision Type:

 Key Decision

Matter for Decision

Approve that affordable rents are reviewed in line with rent legislation, to ensure that the rents charged are no more than 80% of market rent, with this figure then reduced by 1%, as with social housing. Local policy is to cap affordable rents at the Local Housing Allowance level, which will result in a rent freeze from 3rd April 2017 for 1 and 3 bedroom properties, and a 3% increase in combined rents and charges for 2 and 4 bedroom properties.

Why The Decision Had To Be Made (And Any Alternative Options):

The national review of Local Housing Allowance levels for the Cambridge area, has resulted in an increase in the Local Housing Allowance for both 2 and 4 bedroom properties. The rates for single rooms, 1 and 3 bedroom properties have been frozen as expected. The increase in rates for 2 and 4 bedroom properties is in recognition of the above average increase in market rental values for this size of dwelling in this area specifically.

 

As a direct result of this announcement, an urgent decision is sought, to allow the authority to reflect the increase in combined rents and charges for 2 and 4 bedroom affordable rented homes with effect from 3rd April 2017, to ensure that they continue to be capped at the Local Housing Allowance level in line with local policy.

 

The Executive Councillor’s decision(s):

Approved that affordable rents are reviewed in line with rent legislation, to ensure that the rents charged are no more than 80% of market rent, with this figure then reduced by 1%, as with social housing. Local policy is to cap affordable rents at the Local Housing Allowance level, which will result in a rent freeze from 3rd April 2017 for 1 and 3 bedroom properties, and a 3% increase in combined rents and charges for 2 and 4 bedroom properties

Reasons for the decision:

As detailed in the Officer’s report

 

Scrutiny consideration:

 

As required by the Councils Constitution under the urgent decisions and special urgency procedure rules (Para 9 of Part 4B), the agreement of the Chair and Vice Chair of the Housing Scrutiny Committee has been obtained.

 

Report:

A report detailing the background and financial considerations is attached.

Conflicts of interest:

n/a

Comments:

This urgent decision under special urgency will be reported back to Full Council on 20 April 2017 and the Housing Scrutiny Committee on 20 June 2017.

 

Publication date: 21/02/2017

Date of decision: 21/02/2017