Decision details

Council home rent levels are set in accordance with the formula in the national Rent Standard which recognises the need for some local flexibility to take into account local pressures. Council rents are generally set as “social rents” which are expected to be between 40 and 60% of market rent in a locality. Current social council rents in Ipswich are at around 40% of market rent. Rental income funds the upkeep of council housing and the development of new council homes. The costs of maintaining council housing including both reactive and planned maintenance, meeting new fire and building safety standards and regulatory requirements has increased significantly and continues to increase.

The Government allows flexibility to increase rents for new tenants up to 5% above formula rent for general needs tenancies or 10% above formula rent for supported housing, including Sheltered Accommodation. It is proposed to introduce a Rent and Service Charge Policy which increases rents for new tenants by up to 5% above formula rent for general needs tenancies or 10% above formula rent for supported housing, including Sheltered Accommodation.

The Council requires the services of an external consultancy to carry out a review of the Councils approach to service charges and rent flexibility in the general needs Council Housing portfolio.

A procurement exercise was undertaken in August 2024. However, despite receiving two tenders neither were compliant with the Council requirements.

To waive requirements within the Contract Standing Orders to conduct a competitive purchasing process for this requirement in accordance with the Council’s Constitution, Part 4, Section 7, Contract Standing Orders, para 3.10 and Part 3, Section 5, Officer Delegation Scheme, para 9.1.

Reason:

That further delay in awarding a contract would be likely to lead to financial loss and it is economically in the best interests of the Council to proceed with an award without further delay.

Decision:

To award the contract to Ark Consultancy. The contract will be based on a 12 month initial term with an optional extension of 12 months. The estimated contract value is £14,000.

Reason:

Ark Consultancy have the requisite experience of delivering on the Council’s requirements and meet all of the compliance related elements that satisfy the Council’s requirements.