Decision Maker: Cabinet Member For Housing

Outcome: Recommendations Approved

Is Key Decision?: Yes

Is Callable In?: Yes

Date of Decision: January 15, 2024

Purpose: To consider and agree the Crawley Homes annual rent and service charge increase for 2024/25.

Content: Councillor I Irvine, Cabinet Member for Housing, exercised their delegated authority on 15 January 2024 to approve the recommendation in the Housing Revenue Account Property Portfolio Rents for 2024/25 consideration report CH/204 which was published in Councillors’ Information Bulletin IB/1213 to: Increase rents for social and affordable dwelling rents by 7.7% Increase rents for shared ownership and hostels by 7.7%. Increase service charges as follows: Accommodation Type Revised Service Charge Current Service Charge % Increase Enclosed Blocks (including leaseholders) £2.99 £2.67 12% Hostels £23.43 £18.01 (Bewbush Manor £10.74) 30% (118%) Milton Mount (including leaseholders) £6.23 £5.56 12% Bridgefield House (leaseholders only) £6.05 £5.41 12% Councillor Irvine took the decision to limit service charge increases to 12% (for all properties where service charges apply, except hostels) as he deemed it was in the best interest of residents to limit the increase.  Councillor Irvine decided to increase service charges by 30% (118% Bewbush Manor) as it is necessary to ensure services provided via the General Fund are self-funding. Councillor Irvine took the decision to not take forward the introduction of cleaning and laundry service charges for sheltered housing as he deemed it was not in their best interests to take that forward. Further information was also received before Councillor Irvine exercised their delegated authority, the additional information refers to the Local Housing Allowance (LHA) rate and the impact on Affordable Rents, as a result it took longer for the decision to be taken and more time was required to consider this new information.  The information provided is as follows: Size of accommodation Weekly amount Indicative LHA Rates % Increase Shared £101.61 109.62 7.88% 1 £172.60 197.92 14.67% 2 £218.63 253.15 15.79% 3 £276.16 314.14 13.75% 4 £356.71 402.74 12.90% 5 £356.71 402.74 12.90% As a result of the above information Councillor Irvine took the decision to increase Affordable Rents by 7.7% (CPI + 1%) in line with all other rent increases.  Rental income has a significant impact on the HRA business plan projections and the Council’s ability to both maintain its existing stock, develop new properties and plan for decarbonisation. Increasing rents by CPI + 1% ensures we can continue to invest in Council stock.