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 3^rd 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 3^rd 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 3^rd 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.