6.4% rise in council housing rent, decision today.
7:29am 15th February 2011
City of York Council’s Executive will be asked to approve the 20011/12 rent for council tenants at a meeting being held on Wednesday 15 February.
Under government guidelines, the council’s housing rents are under going a rent restructuring process to move existing rents in York towards a government-set ‘target rent’. Councillors will be asked to approve a recommended rent increase of 6.4 per cent for the forthcoming year, in line with this national guidance.
When considered against the national HRA Subsidy rules (Housing Revenue Account), if the council chooses not to increase the rent in line with government guidance it would still have to pay ‘Negative Subsidy’ of £7.74m to the Government , based on rental income assuming the increase was in line with government guidance.
Money collected through rents is used for direct service provision to tenants, such as repairs and maintenance. Any rent increase would apply to all council properties, including hostels and travellers’ sites.
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