Issue - meetings

To approve the Tenancy Strategy and to make a recommendation to Corporate Policy and Resources Committee

The Joint Group Head Community Wellbeing presented a report to the Committee that sought approval for the revised Tenancy Strategy. The original Tenancy Strategy was introduced in 2012 and had not been reviewed since.

The Committee were advised that the affordable rents were currently 80% of the market rent. Because of the high rents within the Borough these reduced rents were still not affordable for a lot of potential residents on low income. A number of tenants had been relying on Discretionary Hardship Payments initially to afford their rent which is not a sustainable funding basis and adds pressure to the Council’s revenue budget. The revised Tenancy Strategy sought, following a consultation with Registered Providers and Knowle Green Estates to deliver an affordable rental of 70% for new tenancies for re-lets as well as new builds where planning permission had already been granted.

Concerns were raised about the financial implications for the Council’s whjolly owned housing delivery company Knowle Green Estates and its ability to repay loan financing to the Council if the affordable rent was reduced to 70%. No other Local Authorities in Surrey currently used the 70% model although a few are considering moving to 70%. It was raised that because it was a change of policy it should go before more Committees for their feedback before going onto Council. The Deputy Chief Executive stated that this issue fell within the remit of this Committee but that it would go before the Corporate Policy and Resources Committee.

The Committee asked that Directors from Knowle Green Estates be asked to attend the next meeting of the Committee.

It was suggested that this issue needed to be deferred to the next meeting of the Committee in order for the views of Knowle Green Estates and the Corporate Policy and Resources Committee to be sought. However other Committee members were happy to make a decision at the meeting.

The Chair, Councillor Dunn proposed that Recommendation 2 of the report be approved and by way of a show of hands the Committee agreed as follows:

For - 5

Against - 1

The Committee resolved to approve the Tenancy Strategy and recommend to the Corporate Policy and Resources Committee that the Tenancy Strategy is approved.