Minutes:
Councillor Johnson introduced
the report and outlined how it considered rent and charges for the
coming financial year, to ensure that HRA stock could be financed
and maintained. He highlighted comments made by the Housing
Overview and Scrutiny Committee in section 7 of the report, and
stated that they had disagreed with the proposed increase in rent
and service charges. He felt that these increases were necessary as
they improved the quality and quantity of HRA stock. Councillor
Johnson then compared current rents, which averaged £87 per
week in 2019, with average rents in 2015/16, which had averaged
£90.18 week. He stated that even with the proposed rent
increase of an extra £2.36 per week for residents, rental
costs would still be less than in 2015/16 and would be the lowest
in Essex. He highlighted that the extra money raised through rent
increases would be used to fund projects such as external
decoration, new door entry systems to increase security, and garage
renovation or regeneration to decrease the amount of anti-social
behaviour. He stated that there had been lots of consultation with
residents regarding the proposed rent and service increases,
including with the Tenants Panel, and eight face-to-face
consultation sessions attended by the finance and housing teams,
which had been visited by 113 residents. He highlighted that these
increases were necessary to ensure a viable HRA budget, and ensure
that all tenants lived in safe and secure accommodation.
The Leader opened discussions and stated that HRA rent had
increased under the Labour administration, even though central
government had mandated year-on-year rent decreases. He highlighted
that if Cabinet agreed Housing Overview and Scrutiny
Committee’s recommendations to not increase rent and service
charges, then the Council would not be able to build as many new
council homes, undertake repairs, or facilitate new housing
projects, as the HRA would lose £2.3million income in
2020/21. He understood that some residents might find it difficult
to pay the extra rent increase, but Thurrock still had the lowest
rents in Essex, and HRA rents were cheaper than in the private
sector. Councillor Maney agreed that the rents should be increased,
as HRA rents were cheaper than private sector renting. He queried
why non-council tenants that paid rent on garages appeared to
receive a cheaper rate than council tenants and the Leader replied
that an answer would be provided in writing. Councillor Watkins
stated that residents depended on Thurrock services and policies,
and the proposed rent increase would help to fund these necessary
housing services.
RESOLVED: That Cabinet:
1. Agreed the changes included in the base budget for
2020/21.
2. Agreed an increase in domestic rent of 2.7% in line with the
30-year HRA business plan from 6 April 2020.
3. Agreed a 2.7% increase in service charges for 2020/21.
4. Agreed the Leaseholder charges for Homeownership services, as
detailed in paragraph 5.8.
5. Agreed the changes to garage rents, as detailed in paragraph
3.11.
6. Agreed the approval process for specific acquisitions that
affect the HRA, as detailed in paragraph 4.5.
7. Considered the recommendation made by the Housing Overview and
Scrutiny Committee, as set out in Section 7.
Supporting documents: