Archived decisions

HAMPSHIRE COUNTY COUNCIL

Decision Report

1. Executive Summary

1.1. The purpose of this report is to consider the appropriate level of rents to be charged to occupiers of the County Council's residential portfolio and to make an appropriate recommendation as to the rental levels to be set with effect from 01 April 2010.

1.2. The report:

· provides details of the nature of the residential estate

· confirms the policies for the annual review of rents

· sets out recent trends in rental levels in both the public and private sectors

· draws conclusions for the forthcoming review of rents.

2. Contextual information

2.1. The County Council owns around 100 dwellings which produce a current annual income of approximately £450,000. The dwellings are let to occupiers under a range of different tenancies. Most are occupied either by an existing member of staff (such as a caretaker) under a service tenancy, or by a private resident under a secure tenancy protected under the provisions of the Housing Act 1985. There are a small number of dwellings which are made available to new members of staff under the Council's Staff Temporary Housing Scheme. Some of the service tenants pay rent based on their salary rather than the rental value of the dwelling they occupy.

2.2. The County Council's policy has been to review residential rents each April. In undertaking the review, consideration is given to changes in market values over the preceding period, any changes in rental levels in the public sector and the nature of the stock of the County Council's housing accommodation. Rents were increased by 5% in both 2007 and 2008 and by 4% in 2009.

3. Recent Trends

3.1. Over the past year there has been an element of growth in demand for rental property but also a corresponding increase in supply. This reflects the difficulty in the wider housing market, resulting from the state of the economic downturn, a reduction in the availability of mortgages, and a reluctance on the part of owners to sell at reduced prices. The overall effect in terms of rental levels has been broadly neutral. Some areas of Hampshire have seen a small increase in rents and others a small decline, but overall the picture is one of little change.

3.2. The setting of rents in the public sector for housing associations and housing authorities is determined by government policy. This currently dictates that annual rent increases should be implemented based on the change in Retail Price Index plus 0.5%. Since March, the year-on-year change in the RPI has shown a negative value, and currently stands at -1.3%. As a result, it is anticipated that there will be little or no change in the level of rents charged by housing associations at their next review.

4. Conclusions

4.1. It is proposed that rents in respect of Hampshire County Council accommodation remain at their current level next year. This is consistent with the broad picture which exists in the private rented sector and is also in line with expectations in the public rented sector. It is considered that this will be welcome news to the County Council's existing tenants at a time of economic uncertainty.

4.2. It should be recognised that the County Council is not in a true market position, with its properties occupied by a mixture of secure tenants, service tenants and new members of staff. The proposal not to increase rents next year will maintain County Council rents at an affordable level, well below current market rents, reflecting the nature of the County Council's housing stock and the occupation arrangements.

5. Recommendation

5.1. That rents charged in respect of Hampshire County Council dwellings let to staff and other tenants remain at their current level with effect from 01 April 2010 for the next 12 months.

CORPORATE OR LEGAL INFORMATION:

Links to the Corporate Strategy

Other Significant Links

IMPACT ASSESSMENTS:

1. Equalities Impact Assessment:

1.1. An equalities impact assessment has been considered in the development of this report and no adverse impact has been identified.

2. Impact on Crime and Disorder:

2.1. The County Council has a legal obligation under Section 17 of the Crime and Disorder Act 1998 to consider the impact of all the decisions it makes on the prevention of crime. The proposals in this report have no impact on the prevention of crime

3. Climate Change:

3.1. The potential impact of this proposal on climate change has been considered and no impact has been identified.

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