Purpose

Delegated key decision, approved at Cabinet on
23/01/2024 HRA Budget 2024/25 report.

Content

Council tenants’ rents and service
charges are reviewed annually, with changes implemented from the
first Monday in April. Tenants rent charges cover the cost of debt
repayment, housing management, maintenance and contribute towards
the delivery of new homes. Some tenants also pay weekly service
charges for specialist services not universally available, for
example caretaking or cleaning of communal areas, CCTV, or digital
TV provision.
Changes to rents are governed by national policy. Service charge
changes are governed by legislation, with a duty to ensure the
service charges raised match the cost of the service provision. The
MHCLG Policy Statement on Rents for Social Housing recommends that
for fixed service charges ‘registered providers should
endeavour to keep increases for service charges within the limit on
rent changes, of CPI + 1 percentage point, to help keep charges
affordable’.
Most of Housing and Landlord Services service charges are fixed and
inflationary uplifts are applied annually. Changes that are
affecting costs include inflationary uplift in staffing cost:
2024/25, materials, contracts and utilities costs escalating beyond
CPI indexation. Given the escalation in cost-of-service provision,
the recommendation is to increase these charges by CPI plus 1%
(total of 7.7%).
There are variable service charges, meaning the actual charges are
passed onto tenants to pay, for heating prepayment and water
charges (utilities provisions to individual homes, not communal
areas). For heating prepayment, the recommendation is to increase
charges by 7.7%. This reflects the provisional forecast in energy
costs for 2024/25.
Leaseholder service charges for both service provision and capital
investment are dealt with separately and charged in line with
leases and regulatory requirements.
Finally, for garages the recommendation is for a 7.7% inflationary
uplift, this is in line with other non-dwelling rent increases for
BCC assets.
Zero increase: furniture, carpets and white goods (as actual costs
are calculated and spread over 4 years)
7.7% increase: garages and parking bases
7.7% increase: All other service charges including (list not
exhaustive):
General needs accommodation: caretaking, CCTV, cleaning of communal
areas, concessionary TV licence, controlled door entry, digital TV,
laundry, warden service charges, supporting peoples charge,
mobility scooter storage.
Supported housing for homeless households: communal heating