Council house rent to go up

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The Council has backed Rochdale Boroughwide Housing over plans to increase rent for 2009/10, in line with the notional rent increase set by national Government.

The draft budget of the Housing Revenue Account (HRA) was presented to councillors at a cabinet meeting last night (Monday 16 December). The cabinet approved the rent increase and increases for other charges, such as heating, amenities and service charges.

The current draft budget for 2009/10, and provisional budgets for 2010/11 and 2011/12, are based on an increase in average actual rent of 6.28%, in line with the rent restructuring formula.

The Government is currently consulting with the local authority on the 2009/10 housing subsidy settlement, which includes options for rent increases within its overall rent restructuring policy.

RBH chief executive Gareth Swarbrick said in a letter to council cabinet member for housing, Councillor Doreen Brophy-Lee: "RBH believes that the most sensible and prudent way forward would be for the Council to approve a rent increase in line with the Government's rent restructuring formula. We therefore very strongly recommend to the Council that this decision is taken. This will mean that HRA position is not further worsened and existing service levels will be protected.

"Of course RBH totally understands that in the current economic climate a lower rent increase will be seen as an attractive by some Elected Members. However the implications of taking such a decision could have long term consequences in terms of the sustainability of the HRA and the vital services it funds."

The Council could lose out on Government subsidies if it sets the rent increase lower than the notional increase set by Government guidelines.