The Head of Financial Services submitted a report to Cabinet on 24 January 2024 which presented the outcome of Oxford City Council’s (the Council’s) annual rent review and associated rent setting proposal for 2024/25 in respect of all Council dwellings within the Housing Revenue Account (HRA), including the setting of associated services and facilities charges.

The draft Cabinet minutes will be available here when published.

Councillor Ed Turner, Deputy Leader (Statutory) and Cabinet Member for Finance and Asset Management will present the report and present Cabinet’s recommendations.

Recommendations: Cabinet recommends that Council resolves to:

1.    Approve an increase of 7.7% for 2024/25 (subject to any subsequent cap on increases imposed by central government) in social dwelling rents from 1st April 2024 giving an average weekly increase of £9.27 per week, and a revised weekly average social rent of £129.72 as set out in the Financial Implications section of this report;

2.    Approve an increase to rents for shared ownership dwellings as outlined in paragraph 15 of the Financial Implications;

3.    Approve an increase to service charges by 7.7% (CPI + 1%) to enable the HRA to recover the associated cost of supply;

4.    Approve an increase to the charge for a garage of 7%, equating to an increase of £1.25 per week for a standard garage with a revised charge of £19.10 per week, and an increase of £1.44 per week for a premium garage with a revised charge of £21.60 per week; and

5.    Approve the option to exercise the Rent Flexibility option in respect of re-lets to new tenants as outlined in paragraph 6 below.

Council considered the report from the Head of Financial Services which presented the outcome of Oxford City Council’s annual rent review and associated rent setting proposal for 2024/25 in respect of all Council dwellings within the Housing Revenue Account (HRA), including the setting of associated services and facilities charges.

Cllrs Diggins, Clarkson and Goddard arrived at the meeting.

Councillor Linda Smith, Cabinet Member for Housing, introduced the report and proposed the recommendation.

Councillor L Smith responded to questions, stating that social and affordable rents in Oxford remained significantly below the local housing allowance rate.  It was hoped that further government investments were made available to Councils like Oxford towards building more homes and preventing rent increases, however the Councillor pointed out that this was not the current situation.

In terms of council garage charges, Councillor Ed Turner, Deputy Leader (Statutory) and Cabinet Member for Finance and Asset Management, emphasised the need to strike a balance between encouraging car use and reducing the number of cars on the road.  Ultimately, the recommended figure was in alignment with the government guidance on rent increases.

The Committee and Member Services Manager clarified that the briefing note, which had been published on 26 January 2024 and available publicly, contained the updated figure of 7.7% applicable to garages.

In her summary, Councillor L Smith advised that tenant involvement and engagement consultation was in the process of being improved with additional staffing.  The Council was reminded that the proposed recommendation pertained to the Housing Revenue Account, a ring fenced budget used solely for the Council's housing services, separate from the General Fund.

The recommendation was agreed on being seconded by Councillor Ed Turner and put to the vote.

Council resolved to:

1. Approve an increase of 7.7% for 2024/25 (subject to any subsequent cap on increases imposed by central government) in social dwelling rents from 1st April 2024 giving an average weekly increase of £9.27 per week, and a revised weekly average social rent of £129.72 as set out in the Financial Implications section of this report;
2. Approve an increase to rents for shared ownership dwellings as outlined in paragraph 15 of the Financial Implications;
3. Approve an increase to service charges by 7.7% (CPI + 1%) to enable the HRA to recover the associated cost of supply;
4. Approve an increase to the charge for a garage of 7.7%, equating to an increase of £1.37 per week for a standard garage with a revised charge of £19.22 per week, and an increase of £1.55 per week for a premium garage with a revised charge of £21.71 per week; and
5. Approve the option to exercise the Rent Flexibility option in respect of re-lets to new tenants as outlined in paragraph 6 below.

The Head of Financial Services has submitted a report to present the outcome of Oxford City Council’s annual rent review and associated rent setting proposal for 2024/25 in respect of all council dwellings within the Housing Revenue Account, including the setting of associated services and facilities charges.

Cabinet is recommended to:

1.     Recommend to Council to approve an increase of 7.7% for 2024/25 (subject to any subsequent cap on increases imposed by central government) in social dwelling rents from 1^st April 2024 giving an average weekly increase of £9.27 per week, and a revised weekly average social rent of £129.72 as set out in the Financial Implications section of this report;

2.     Recommend to Council to approve an increase to rents for shared ownership dwellings as outlined in paragraph 15 of the Financial Implications;

3.     Recommend to Council to approve an increase to service charges by 7.7% (CPI + 1%) to enable the HRA to recover the associated cost of supply;

4.     Recommend to Council to approve an increase to the charge for a garage of 7%, equating to an increase of £1.25 per week for a standard garage with a revised charge of £19.10 per week, and an increase of £1.44 per week for a premium garage with a revised charge of £21.60 per week; and

5.     Recommend to Council to approve the option to exercise the Rent Flexibility option in respect of re-lets to new tenants as outlined in paragraph 6.

The Head of Financial Services had submitted a report to present the outcome of Oxford City Council’s annual rent review and associated rent setting proposal for 2024/25 in respect of all council dwellings within the Housing Revenue Account, including the setting of associated services and facilities charges.

Councillor Linda Smith, Cabinet Member for Housing, outlined that the report’s recommendations were consistent with the Council’s budget consultation.  An increase to rents and service charges of 7.7% was proposed in the next financial year, in order to keep pace with inflation and ensure that landlord services and investment in the Council’s properties could continue to be delivered.  Social rents would remain less on average than £130 per week, and would remain covered by Local Housing Allowance rates.

Councillor Smith drew attention to a key paragraph within the report which set out that: ‘A rent increase that is lower than inflation will have a detrimental impact on the viability of the HRA as the income will not be able to keep pace with rising costs and as a consequence would be at risk of failing its tenants in the supply of services and support.’

Responses to the budget consultation had also indicated support for continued investment in new social housing, investing in current stock and improving the energy efficiency of properties.

Councillor Ed Turner, Deputy Leader (Statutory) – Finance and Asset Management, drew attention to the anomaly between the proposed increase in garage charges of 7% and the proposed rent and service charge increase of 7.7%.  Councillor Turner proposed an amendment to the recommendation to Council in the report, which was accepted by Cabinet, such that the increase to the charge for a garage be 7.7%.

Cabinet resolved to:

1.     Recommend to Council to approve an increase of 7.7% for 2024/25 (subject to any subsequent cap on increases imposed by central government) in social dwelling rents from 1^st April 2024 giving an average weekly increase of £9.27 per week, and a revised weekly average social rent of £129.72 as set out in the Financial Implications section of this report;

2.     Recommend to Council to approve an increase to rents for shared ownership dwellings as outlined in paragraph 15 of the Financial Implications;

3.     Recommend to Council to approve an increase to service charges by 7.7% (CPI + 1%) to enable the HRA to recover the associated cost of supply;

4.     Recommend to Council to approve an increase to the charge for a garage of 7.7%, equating to an increase of £1.37 per week for a standard garage with a revised charge of £19.22 per week, and an increase of £1.55 per week for a premium garage with a revised charge of £21.71 per week; and

5.     Recommend to Council to approve the option to exercise the Rent Flexibility option in respect of re-lets to new tenants as outlined in paragraph 6.