The Executive Director of Finance and Corporate Resources presented the Housing Revenue Account Rent Setting Report for 2020/21. Members were advised that 2019/20 was the final year in the four year period in which Council had been required to reduce rents by 1% per annum. In 2020/21 the Government had clarified that authorities could increase rents for tenants by CPI + 1%. The Council was proposing to increase rents in line with this figure which would have a positive impact on the HRA.
Members discussed the report and commented that the previous requirement to reduce Council tenants’ rent by 1% per annum had had a negative impact on the HRA. This had created financial difficulties for the authority and Members noted that a similar requirement had not been placed on Housing Associations.
the actual average rent increase for 2020/21 be set as September 2019 CPI, 1.7%, plus 1% resulting in an increase of 2.7%