Decision details

(1)        That the Cabinet’s previous decision to charge “affordable rents” for Council properties built under the Council’s Housebuilding Programme be re-affirmed;           

(2)        That when such properties are (re)let, the Council’s affordable rents be set at a level equivalent to the lowest of:

(a)        80% of market rents for the locality in which the property is situated, as assessed by the Council’s Estates and Valuations Division;

(b)        the Local Housing Allowance level for the Broad Market Rental Area (BMRA) in which the property is situated; and

(c)        a rent cap of £180 per week, irrespective of the size of the property.

(3)        That affordable rents be increased annually by the Retail Price Index (as at the preceding September) + 0.5% (or any other maximum increase determined by the Government), until the tenant vacates, when the affordable rent will be re-based in accordance with the Homes and Communities Agency’s (HCA’s) Affordable Rent Model and the policy at (2) above;

(4)        That the Council’s rent cap level be reviewed annually by the Council Housebuilding Cabinet Committee; and

(5)        That the Director of Housing be authorised to enter into Short Form Agreements with the Homes and Communities Agency for all developments, to enable affordable rents to be charged for the properties built under the Housebuilding Programme, and that the “Provider Representative” named in the Agreements be a senior figure at East Thames Group.