Agenda item

HRA Rent Setting and Draft Budget 2022/23

Meeting of Cabinet, Monday, 7th February, 2022 6.30 pm (Item 26/22)

Cabinet Member: Cabinet Member for Homes, Patricia Hay-Justice

Officer: Interim Corporate Director of Housing, David Padfield

Key decision: Yes

Decision:

The Leader of the Council delegated authority to the Cabinet to make the following decisions:

RESOLVED: To

1. Approve the following increases for charges within the HRA:

a. Increase rent levels in 2022/23, increase by 4.1% against the 2021/22 rate in line with the Government guidance on the limit on annual rent increases for 2022-23

b. Service charges applied to tenants that receive the services will increase by 4.1% against the 2021/22 rates

c. Garage rents increase by 4.1% 1.4 Parking spaces rents increase by 4.1%

d. Caravan plot rents to increase by 4.1%

e. Heating charges to increase by 4.1%

Minutes:

The Chair invited Cllr Hay-Justice (Cabinet Member for Homes) to introduce this item. She outlined the background to the report and the rent-setting policy as previously agreed by Cabinet. The proposal was to increase the rent by 4.1% which would provide vital funds to support most vulnerable residents. Members heard about scrutiny of the policy and the responses to these.

Cllr Hay-Justice informed colleagues of risks of not following government guidance should the rise not be imposed. Comparisons with other councils have been considered and members heard how Croydon had provided substantive support via assistance to the most vulnerable.

David Padfield (Interim Corporate Director of Housing) addressed the quality impact analysis and referred to Paragraph 9.9 which informed colleagues that work was now complete. He updated members on further work being done alongside that of the housing improvement plan and also information on the assessment process for accessing hardship payments for those in most need.

Cllr Ali invited colleagues to raise any issues and they made the following points:

· They raised concerns about the cost of living crisis and whether the uplift was higher than before;

· What was set out in line with the council’s rent setting policy around consultation with residents?

· What assessments had been made on rent-collecting after the rise and impact on residents?

Cllr Hay-Justice responded to comments and said the rise was comparable to previous rises in 2013. Whilst the Council had committed to government’s guidelines, recommendations to inform residents at an earlier stage were made to allow them to plan their finances. She took the opportunity to acknowledge the work of officers and assured colleagues that individuals had been advised of the potential rise last year.

Cllr Hay-Justice went on to remind colleagues that impediment of rental collections had not been at the level expected during the pandemic and work was underway with residents, the Improvement Board and other partners to look at services including the improvement plan.

Mr Padfield reminded members that the rent setting policy was a guidance and a more detailed discussion and consultation exercise might be considered necessary in the future.

Cllr Ben-Hassal (Chair, Streets Environment and Homes Scrutiny Subcommittee) informed colleagues of feedback from their recent meeting and asked members to consider some of the recommendations made by them.

Members agreed the recommendations.