Issue - meetings

Members were advised that the proposed strategy set out to describe and protect the rights of the council’s existing and future tenants. In particular the proposed strategy sought to:

?  describe the arrangements for tenants, with different types of tenancies to swap homes,

?  set out the things that will be considered when deciding whether to renew a flexible or fixed term tenancy,

?  include appeal rights for tenants, and

?  describe the council’s approach to setting rents.

The council set two different types of rent. Social rents were set based on a government formula, which considered average local earnings and values, and applied to the majority of homes owned by the council. Affordable rents were applied to homes in the council’s new build, refurbishment and acquisitions programme.

Regulations allowed for affordable rents to be set at up to 80% of the local market rent. However, rents set at this level locally would not be genuinely affordable for many tenants living on low incomes or reliant on housing benefit or universal credit.

Cabinet therefore proposed to limit our affordable rents to be no more than the relevant Local Housing Allowance (the maximum amount payable to someone in receipt of housing benefit or universal credit for housing costs) for the property to ensure that they were truly affordable for our tenants.

This was illustrated by comparing the current figures for a 2 bedroom property, where the median market rent was approximately £700 per month. A rent based upon 80% of this figure would be £560 per month, whereas a council affordable rent would be £520 per month. Social rents were generally lower than this, with the average social rent for a 2 bedroom flat currently set at £325 per month and for a 2 bedroom house at £360 per month.

The same principle of affordability was proposed for people living in temporary accommodation, with charges linked to the relevant local housing allowance for their accommodation.

The intention of the strategy was to offer tenancies that were suited to the needs of the council’s tenants and to support tenants to remain in their home for as long as was needed. The proposals balanced the needs of existing and future tenants of the council and would ensure that decisions about tenancies and rents were taken fairly and openly.

Councillor Jaye-Jones spoke under Council Procedure Rule 20.1.

Councillor Game proposed, Councillor Savage seconded and Cabinet agreed to:

1.  Approve the consultation draft of the Tenancy Strategy attached at annex 1 of the Cabinet report;

2.  Delegate authority to the Head of Housing and Planning in consultation with the cabinet member for Housing and Safer Neighbourhoods to make any minor amendments required to the policy following consultation.