24 Proposal of Rent and Service Costs for Tatton Gardens
To receive and consider the report of the Director of Commercial Services.
Additional documents:
Decision:
1. Approval for the rent and service charge for Tatton Gardens to commence in-line with those already established for Primrose Gardens.
2. Approval that annual Affordable Rent increases will be a maximum of September CPI plus 1% in line with other housing providers in the borough and that the first annual increase will take place from April 2023.
3. Approval for future annual increases in rent for Chorley Council Housing Stock, including Extra Care, to be approved within the annual fees & charges setting process.
4. Approval to establish a new annual revenue budget of £400,000 per annum to staff and operate Tatton Gardens commencing in October 2021.
Minutes:
Councillor Terry Howarth, Executive Member (Homes and Housing) presented the confidential report of the Director of Commercial Services.
Members supported the project and the provision of additional housing units.
Decision:
1. Approval for the rent and service charge for Tatton Gardens to commence in-line with those already established for Primrose Gardens.
2. Approval that annual Affordable Rent increases will be a maximum of September CPI plus 1% in line with other housing providers in the borough and that the first annual increase will take place from April 2023.
3. Approval for future annual increases in rent for Chorley Council Housing Stock, including Extra Care, to be approved within the annual fees & charges setting process.
4. Approval to establish a new annual revenue budget of £400,000 per annum to staff and operate Tatton Gardens commencing in October 2021.
Reasons for recommendations:
1. If these recommendations are approved both Primrose Gardens and Tatton Gardens will follow a consistent model for rent and service charge.
2. Rather than setting a fixed model for rent increases which wouldn’t take into account wider economic factors such as high inflation and the cost of living the annual fees & charges setting process allows for a flexible approach which can be discussed each year.
3. The budget is pragmatic based on actuals from Primrose Gardens but with a small contingency for unforeseen items / increases in the first year of operation.
Other options considered and rejected:
1. To have different rents whereby Tatton would start higher than Primrose to reflect market rents which have increased in recent years whilst primrose has remained constant.
2. To have a fixed rent calculation applied each year irrespective of inflation.