Issue - meetings

To consider the outcome of a review of the service charges to tenants of extra-care, hostels and age restrict accommodation.

RECOMMENDED:

That the service charges set out in Appendix 1 to Report Item 4 to the Cabinet be introduced in accordance with the timescales set out in Section 3 of Report item 4 to the Cabinet.

The Cabinet considered the outcome of a review of the service charges for tenants of extra-care, hostel and age restricted accommodation.  The charges had last been subject to a proper review in 2004, with increases to cover inflation having been made since that time.  The charges were for both general services (utilities for the building, internal and external cleaning and grounds maintenance etc.) and domestic services (heating, lighting and water to individual dwellings, but not separately metered).  The service charges applied to some 640 tenanted properties. 

The remodelling of former social housing schemes had removed communal and shared facilities and it was no longer appropriate to levy service charges for these services.  While the extra-care schemes and hostels would have standardised general service charges for the type of accommodation, elsewhere the charges would be calculated on a site-by-site bases.  Charges would also be introduced for the former wardens’ accommodation at decommissioned sheltered schemes.

The proposed charges for 2019/20 were attached as Appendix 1 to the report.  In summary, for the extra-care and age restricted accommodation 65% of households would see a reduction in charge; 1% subject to charge for the first time: 15% an increase of less than £2 per week; and 19% an increase of more than £2 per week.  Where the increase was more than £2 per week, the increase would be phased in over a period of up to 3 years, increasing at £2 per week each year.  For the licensed hostels and general needs accommodation 45% of households would see no change or a decrease in charge; 44% an increase of less than £2 per week and 11% an increase of more than £2 per week, with the same phasing arrangements as for sheltered accommodation.

The Housing Tenant’s Involvement Group had been consulted, starting in the summer of 2017.  Their final response was that the review had been carried out thoroughly and they supported the changes made, which would be fairer.

RECOMMENDED:

That the service charges set out in Appendix 1 to Report Item 4 to the Cabinet be introduced in accordance with the timescales set out in Section 3 of Report item 4 to the Cabinet.