Agenda item

Rents for households in temporary accommodation had been set in various ways, depending on the type of accommodation. Additionally, rent levels for temporary accommodation held in the General Fund had been established in 2011/12 and had not been reviewed since 2017. This approach contrasted with that used for general needs properties held in the Housing Revenue Account (HRA), where rents were reviewed and updated annually as part of the budget-setting process.

The rents and charges for HRA stock were approved as part of the Budget papers in February 2025. This report sought to update the rents and charges for temporary accommodation stock held in the General Fund accordingly.

The Cabinet Member RESOLVED:

Recommendations

The Cabinet Member for Housing and Planning is recommended

To approve:

2.2.1 The Temporary Accommodation Rent Setting Policy (Appendix 1)

2.2.2 The proposed rent levels for 25/26 as set out in the below report.

To note:

2.3.1 The Equalities Impact Assessment at Appendix 2

2.3.2 That the rents and charges for temporary accommodation held in the Housing Revenue Account were approved for increase at Cabinet in February 2025 (extract Appendix 3).

2.3.3 That temporary accommodation rents will be reviewed and updated annually as part of the budget setting process going forward.

Reasons for decision

3.1 Rent setting for temporary accommodation were last reviewed and formalised by the Rents and Charges for Temporary Accommodation Policy approved in April 2017.

3.2 This covered rents in properties used as temporary accommodation in both the Housing Revenue Account and General Fund. The charges set out in 2017 were not reviewed until Page 1 Agenda Item 4 February 2025 when the rents and charges for HRA properties were updated in the 2024/25 Budget report (see Appendix 3).

3.3 However, rents for temporary accommodation held in the General Fund were not part of this approval process. This report therefore seeks approval of a new Temporary Accommodation Rent Setting Policy (Appendix 1) to update the rents and charges for General Fund temporary accommodation. to ensure that the approach for rent setting in all types of temporary accommodation is fair and transparent.

3.4 This rent setting policy update will create uniformity between rent levels for temporary accommodation leased and licenced to the Council, rent levels for temporary accommodation held by Homes for Haringey (the Council’s wholly owned company) and rent levels for those offered a private sector tenancy.

3.5 Benchmarking with other boroughs has indicated that this approach is similar to the rent setting policies applied or being considered by other boroughs.

Alternative options considered:

Not updating the rents and charges

4.1 Rents for General Fund accommodation have not been updated since 2011/12 and not reviewed since 2017. The option of not updating the charges was rejected as not updating them would maintain the disparity between rents in leased and licenced temporary accommodation with other tenure types.

4.2 The proposed update will bring these rents to the current Local Housing Allowance and bring parity between these different tenures. Only apply higher rents to new tenants/licensees

4.3 This option was rejected as it would create further disparity in rents for tenants in similar types of properties.