Issue - meetings

Portfolio Holder – Councillor Alasdair Ross

To ask Executive to recommend to Council:

·       An increase in 2025/26 for social housing rents, in line with the Government guideline rent increase;

·       An increase in 2025/26 for affordable housing rents, in line with the Government guideline rent increase, to be capped at Local Housing Allowance (LHA) Rates;

·       An increase in 2025/26 for garage and hard standing rents to mirror guideline social / affordable rent increase of 2.7%;

·       To amend the service and utility charges for the sheltered housing schemes removing the £2 cap and introducing a phased approach to increases.

70.1.     Councillor Ross introduced the report that recommended to Council an annual rent increase of 2.7% for council-owned properties, which was far less than the previous year’s increase but was necessary to continue to maintain council housing stock and address issues relating to fire safety, RAAC and mould whilst providing a good service to tenants.

70.2.     Councillor Ross highlighted the good work of Tenancy Services, in particular its Income Team, for the high level of rent collection achieved, even after the high rent increase last year, by offering support to tenants and targeting visits to those tenants who most needed help.

70.3.     Councillor Fisher welcomed the good recovery of housing debts and asked whether, given the ongoing cost of living pressures, it was possible to limit the rise in council rents, instead of applying the maximum increase. Councillor Fisher asked whether sheltered housing tenants had been consulted on the increase of service charges over the next 3 years and whether it would be affordable for them.

70.4.     Councillor Ross commented that failing to increase rents sufficiently would only build up problems for future years and make it difficult to recover costs in the longer term, especially if future years required a much higher rent increase to be applied due to inflation rates; a cap had been introduced for sheltered housing service charges, but these charges were no longer covering costs.

70.5.     The Head of Tenancy Services, Arron Samson, reported that consultation on the proposals had been undertaken in October 2024 via the Customer Engagement Panel, comprising tenant representatives, and at the Area Housing Panels in December 2024, but not directly with sheltered housing tenants. Once the proposed increase was agreed, it would be discussed with sheltered housing tenants.

70.6.     Councillor Fisher asked whether the sheltered housing service charge was payable as a one-off yearly payment at the beginning of the year or as payments spread across the year.
The Head of Tenancy Services confirmed that it would be proportional payments spread across the year.

70.7.     Councillor Jones highlighted paragraph 2.16 of the report and the disparity between private sector rents and council rents in Ipswich, and added that council tenants also benefitted from decent homes, support from Housing Officers and security of tenure in a highly pressurised housing market.

It was RESOLVED:

That Executive recommends to Council that it:

a)             Approves an increase to council housing rents, both social and affordable, from 1 April 2025, in line with the Government guideline of 2.7% for the financial year 2025/26 in time to give written notice to tenants by the 3^rd of March 2025.

Reason: In order to implement an appropriate rent level in line with Government guidance and comply with legal notice requirements.

b)             Approves a cap at Local Housing Allowance rates for any affordable council house rent annual increase.

Reason: In order to implement an appropriate rent level in line with Government guidance.

c)             Approves the charges set out for sheltered schemes at Appendix 1 for the financial year  ...  view the full minutes text for item 70