Agenda Reports Pack (Public) 15/10/2012, 19.00 - Meetings ...

Building a Housing Ladder of Opportunity –Tenancy Strategy8.4 The Council recognises that Affordable Rents for new individualproperty types are likely to involve a degree of scheme-level crosssubsidy,i.e., higher rents on smaller properties supporting lower rentson larger properties. This will provide the basis for RegisteredProviders to deliver large family accommodation (i.e., three bedroomsor more) with rental and service charge costs that stay within thehousing benefit caps and the Universal Credit caps due to beimplemented in 2013. At a strategic level, where additional revenuesare accrued from the Affordable Rent scheme, the Council would wantto see such revenues used for more, innovative low cost homeownership schemes in the borough.8.5 The Council’s approach to Affordable Rent levels is straightforward.When setting rents, Private Registered Providers will be expected toreview the private sector rents for the relevant Broad Rental MarketArea (BRMA); reduce the rent charged at the 30 th percentile by 20% forthe relevant bedroom sizes; ensure that service charges are includedwithin the proposed rent charged; propose a inflation increase basedon Retail Price Inflation (RPI) to tie in when the respective homes willbe available for letting. In the case of Supported Housing schemes,taking account of increased management costs, the approach to rentswill be discussed on a scheme by scheme basis.8.6 The Council will update and publicise on its website every Septemberits guideline Affordable Rents. These guideline rental costs are toinclude service charges which will be reviewed on an annual basis.9. Wider Housing Options9.1 The Council’s Housing Options Team offers a wide range of advice forpeople seeking homes in the borough.9.2 For the future, the Council intends to deliver the regeneration of fivekey opportunity areas in the borough, which can deliver 20,000additional homes and associated economic and communityinfrastructure. The Core Strategy target of 40% of additional housingbeing affordable – principally low cost home ownership and affordablerent housing – will mean more affordable housing to access, but over atwenty year timeframe.EndHousing Options Advice can also be downloaded from:http://www.lbhf.gov.uk/Directory/Housing/Housing_advice/16Page 441