Swindon tenants consulted over rent (From Swindon Advertiser)
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Swindon Council consults tenants over rent
2:30pm Friday 4th January 2013 in News
Swindon tenants consulted over rent
SWINDON Council is consulting with its tenants about how much rent they should pay for their homes from April.
The consultation comes after a new system for funding council housing came into force last year.
Under the Government’s Self Financing arrangements, which replaced the subsidy system of council housing finance, the council took on £140m of the national council housing debt from April 1 last year.
Although the council now keeps all the £46m it receives from tenants in rents and service charges, it now needs to pay £5m a year alone in interest on the debt and will need to pay off the £140m while continuing to invest in the council’s housing stock.
Consultation meetings will be on January 10, Swindon Tenants’ Voice at 6pm; January 23, Housing Advisory Forum at 6pm, January 29, Leaseholder Link meeting at 6pm and February 13, The Tenants’ Association for Sheltered Housing at 2pm.
All the meetings will be held at the Civic Offices, in Euclid Street.
People unable get to meetings they can comment on the Swindon Housing Facebook page, write to Housing Services (Rent Consultation), Civic Offices, Swindon, SN1 2JH or email housing@swindon.gov.uk.
People can find out more information about the consultation in the council’s Housing Matters publication for tenants, via the e-Housing newsletter and on the Swindon Housing Facebook page.
Comments(44)
salt and vinegar
says...
4:38pm Fri 4 Jan 13
SpeakUp
says...
4:50pm Fri 4 Jan 13
Russell Holland
says...
6:59pm Fri 4 Jan 13
The purpose of the consultation exercise is to present the options to tenants before making a decision.
LordAshOfTheBrake
says...
7:10pm Fri 4 Jan 13
==========
Surely its as simple as finding out he market rate for a particular property!
Can I be consulted on how much council tax I pay? I don't think I get enough value for money so it should be at least 50% less....!
==========
@Russell
If options are being presented then why were the options not part of the article. Given one of the meetings is next week; surely the options are known by now?
What difference does it make where the money goes; it will still be wasted and spent poorly. Your comment on the separation of the monies; suggests that there is no money from the "general" fund that goes towards the housing revenue account! Is that correct?
Russell Holland
says...
7:29pm Fri 4 Jan 13
Council house rent is generally about 50% of market rent.
It is broadly correct that no money general fund goes into the housing revenue account and vice versa. Some general fund money is used for homelessness functions and some housing revenue account money is given to the Council to reflect the services that the housing department uses from the Council. But overall they are seperate.
I disagree with comments about wasteful spending. I am not saying everything is perfect or that we can be complacent but I do think overall we provide good services.
On Council tax - we are consulting on the budget and there are elections most years where people get to have a vote.
TinkeyWinkey
says...
7:34pm Fri 4 Jan 13
Bet most don't give a monkey's as they are on benefits
salt and vinegar
says...
7:39pm Fri 4 Jan 13
LordAshOfTheBrake
says...
7:42pm Fri 4 Jan 13
50% of market is a disgrace; especially where people are fully employed etc etc.
I wonder how many will want a freeze! All of them perhaps.
If the main points of the presentation cannot be summarised into a few paragraphs then the presentation is a fail.
Presumably the presentation is available on the web; please post a link.
Quote "It is broadly correct that no money general fund goes into the housing revenue account and vice versa."
Broadly correct.... You mean that its incorrect as some money does swap between accounts. Why not tell it like it is....
The council does not provide good service and I know of no one who would argue differently.
Russell Holland
says...
7:45pm Fri 4 Jan 13
Many tenants work and are not on benefits at all.
Many people on benefits work but are on low incomes.
Many people on benefits can't work because of health issues or they struggle to find work.
Many tenants get involved through participating in meetings and consultations. Many more get involved in various ways in their communities. On the estates there is a good community spirit which sits aside social problems.
Russell Holland
says...
7:52pm Fri 4 Jan 13
Setting rents at 75% of market rents would raise more money but it may not be affordable. Keep in mind there are many people in private accomodation who have housing benefit. If you would like the full presentation I have posted on the Swindon facebook page or it can be e-mailed to you. We are looking at doing a summary to go on the website.
We have done a consultation at what is called the "pay to stay" policy whereby people of a particular income could be required to pay more rent. This is something that is being looked at.
Housing revenue account and general fund are covered by specific accounting rules. The full rules are detailed and complex but as a general statement it is correct to say that the two are separate.
Salt - we consider the consultation results as part of the decision making policy. From the feedback I have had already some tenants are already supportive of a rent increase because they want to invest in the stock.
TinkeyWinkey
says...
8:01pm Fri 4 Jan 13
It has always puzzled me as to those that get evicted for rent arrears end up back at the council to house them, after all human rights could not see these people out on the streets!!
Who ends up paying for those that don't give a **** - the tax payer!!
LordAshOfTheBrake
says...
8:06pm Fri 4 Jan 13
Your going to need to explain this!
If there are many people in private accomodation who are claiming housing benefit; What does that have to do with affordability by using 75% of market rate for council tenants?
Quote "Many tenants work and are not on benefits at all."
In which case they should not be eligiabl for subsidised housing.
Quote "Many people on benefits work but are on low incomes."
In which case they are getting subsided twice as the working tax credits are supposed to act as a top up.
What does "invest in stock" mean? I find it difficult to believe that existing tenants would vote for a rise in rents simply out of their generosity for the council to accumulate more social housing to the benefit of others. Does it really mean that it will be "invested" back into their own homes as the council does them up at a lower cost.
Couldn't find the presentation on the facebook page; can you post the link to the facebook page.
Russell Holland
says...
8:06pm Fri 4 Jan 13
I agree that the welfare state needs reform but when we debate the need for reform it's important to make unfair generalisations.
Russell Holland
says...
8:18pm Fri 4 Jan 13
The basic issue though that left entirely to the market house prices can price most people out of buying which means they rent privately. So the advantage of Council housing is that it provides affordable rents - but there are other issues around it - such as being fair in allocations and making it financially sustainable.
So overall when considering how to reduce public expenditure - consideration has to be given to private renting as well as not for profit housing.
Investing in stock means things like new kitchens and bathrooms and acquiring or building new houses. Swindon has a disproportionately large number of pre-fab houses and sheltered housing schemes which can have higher maintenance costs - so keeping them at a good standard can cost more.
Any increase in rent gives us more money to spend on investing in housing. But we also have the £140million to pay off - to some extent we can choose how quickly we pay it off - but the longer we take then this can mean we pay more in interest. So it is a balancing act. Some tenants are willing to pay more rent because they do want to see more investment in the stock.
Link to Swindon Housing page is here http://www.facebook.
com/groups/103290326
395869/?bookmark_t=g
roup
MrAngry
says...
8:24pm Fri 4 Jan 13
They should be named and shamed so that the public can vote them out at the next election.
Russell Holland
says...
8:29pm Fri 4 Jan 13
Russell Holland
says...
8:42pm Fri 4 Jan 13
com/watch?v=WVGMyo40
SyE
LordAshOfTheBrake
says...
8:50pm Fri 4 Jan 13
Found the page, will take a look later.
With regards to the article on the councillors, it can be found at this link.
http://www.swindonad
vertiser.co.uk/news/
local/10132017.Counc
il_trio_didn_t_pay_c
ouncil_tax/
These councillors should be subjected to an independent investigation and if they are still councillors subject to a vote of no confidence. Will you put forward such a motion?
Russell Holland
says...
8:59pm Fri 4 Jan 13
LordAshOfTheBrake
says...
9:15pm Fri 4 Jan 13
adsinibiza
says...
10:37pm Fri 4 Jan 13
Whilst I appreciate that some people are unable to work through ill health or ahve maybe retired and therefore cannot afford full market rent, the rest of them should be paying it......
This is symptomatic of what is wrong with this country and why debt and tax rates are so high - we persist in giving benefits (in a wide sense) to those that simply do not need them, often at the expense of those that do and just about always at the expense of the taxpayer.....
Spurs Fan
says...
9:12am Sat 5 Jan 13
Russell Holland
says...
9:34am Sat 5 Jan 13
Spursfan - I agree with the principle of what you are saying - there are advantages and disadvantages to private and public provision of housing. It's important that government policy looks at both otherwise there is a risk of taking away the advantages of council housing but not really getting to grips with some of the disadvantages of private housing. It is very difficult because of the complex nature of housing but the debate does need to be a balanced. If it is argued that Council housing is subsidised by housing benefit then you could say the same thing about private housing.
To me consultation is worthwhile because we want tenants to be able to participate in decision making. Many tenants are involved in various Council working groups and their input is extremely helpful. We also have lots of discussion on the Swindon Housing facebook page.
LordAshOfTheBrake
says...
10:25am Sat 5 Jan 13
You make the comment about supply and demand and then expect that council housing should use a different criteria. No it shouldn't.
The council should be capitalising on their assets in this case the housing. Especially in these austere times.
The council increasing the rents will not mean a greater amount of housing benefit as it is essentially paying itself. It does mean that those having "an easy ride with a 50% discount" where it is inappropriate no longer do.
@Russell
I made the mistake of looking through some of the comments on the web site. Oh dear..... The likes of Derek Fry are really living on another planet.
I looked through the presentation. Some of the slides look a bit dubious to me, but then I maybe missing something. For example all the options P10-13 show no debt repayment. The interest repayments seem fixed across the 5 years, so the conclusion has to be no debt is going to be paid back in the first 5 years under any option. If you have a surplus of 20m in the first year, surely at least 25% of that should be earmarked for loan repayment; thus reducing the interest.
Spurs Fan
says...
10:37am Sat 5 Jan 13
Russell Holland
says...
11:00am Sat 5 Jan 13
I'd prefer you didn't name individuals from the facebook page - it's fair to say we have a range of different opinions and some good discussions. I want everyone to be able to post without there being personal comments.
I take your point that because of the benefits of a Council house that supports the case for things like increasing rent for people on higher incomes. However, I don't think you can just ignore the issues in the private sector - otherwise you end up losing the advantages of one without tackling the disadvantages of the other.
Housing benefit does pay for itself in the sense that it comes from the central government and is therefore funded by taxpayers nationally rather than locally but it still represents a cost. But again - keep in mind that housing benefit pays for higher rents in the private sector. So if the goal is to reduce public expenditure you can't just ignore the issues that arise out of private housing.
LordAshOfTheBrake
says...
12:08pm Sat 5 Jan 13
Why is their an assumption of interest. The level of debt is X and the rate of interest is Y; therefore the actual debt amount you be known not assumed. Is the interest rate variable?
I understand what the surplus represents which is why I said that 25% should be used to repay capital on the loans; rather than all of it thus allowing a significant sum for reinvestment. The fact that not one of the slides shows a repayment plan suggests how little interest in actually paying back the debt their is.
None of the slides show the real term benefits of each option. There is nothing that states, if we pay back the loan sooner, we can do this with the additional monies being saved from interest payments etc etc etc.
All the slides are doing is presenting some options without saying what each option in real terms is offering. Its just numbers.
Unless I missed it somewhere there is no statement to the existing running costs of "investment" i.e. repairs and upgrades. If that figure currently runs at £25m, then absolutely none of the options would allow for any debt repayment.
The facebook page is open for reading and therefore anyone can look up the details. I didn't join it. If someone posts such a comment on it then it is fair game to refer to it; even more so when they decide to go to the adver with their own little stories.
http://www.swindonad
vertiser.co.uk/news/
9979278.Swindon_s_ho
using_boss_aims_to_c
ushion_needy/
So what are you doing about tacking the private sector renting issues? You've made several comments about their being issues in this area!
Incidentally what was the result of your letter to the housing minister?
Do you support the licensing of private landlords? Do you think it would be beneficial?
Russell Holland
says...
2:12pm Sat 5 Jan 13
On my plan for a back up fund, I am awaiting some more advice on the legal implications of it. I have not written to the Minsiter yet.
On private sector renting issues - the Council has limited powers but the point I am making is that it's not fair to suggest Council house tenants are costing the public purse because the ignores the higher cost of housing benefit paid to private landlords.
This Shelter report is really good on these points http://england.shelt
er.org.uk/__data/****
ets/pdf_file/0009/43
6275/Bricksorbenefit
sfullreport.pdf
house on the hill
says...
2:35pm Sat 5 Jan 13
They talk about those who qualify for it, but how many no longer do? we have thousands who qualify for housing still on the waiting list and thousands who no longer need it and if they appllied today wouldnt qualify anyway still in houses, again what a wierd way to carrry on. There are tens of thousands on over £100k incomes in social housing around the country and we wonder why there arent enough to go around. Everyone bleats on about the moraility of these big corporations avoiding paying tax (completely legal) but i dont see housing tenants who can afford to move out doing so, typical hypocricy of todays society one rule for them and one for everyone else.
Swindon does have a particularly high number of council properites in need of major repair or updates which doesnt help. The tenants decided to take on the debt and the interest payments rather than branch away so they cant complain when things arent done for them.
There is also talk of those unable to work. How many of those are unable to work because of their own fault? I know more than a few tenants (and yes a lot of other people too before you start accusing me of discrimination) who cant work because they are obese through no medical reason, just that they chose to adopt that lifestyle and now we have to pick up the tab! At least one council has the right idea on this and if they dont try and lose weight and become able to work they stop their benefits and quite right too.
The welfare state need a major reform. Only those who really need it should receive it but there should also be an element of responsibility by individuals to do they best they can to ensure they dont need it. People are very quick to stand up for their rights but equally as quick to forget that with rights go responsibilites. I have absolutely no problem with helping people who genuinely need help but there are far too many who think the world owes them a living and and pension for doing absolutely nothing in return and that has to stop, not just because the country cant afford it and will collapse if we continue to be a soft as we are now, but also to make it a fair society that eveyone seems to want. But too many dont really want that, they want something for nothing no questions asked and that has to stop. Tenants should start being grateful that they live in a country that provides so much for them and stop moaning. And tax payers should have more say in how their money is spent, did anyone say democracy? yeah right!
Tim Newroman
says...
10:23am Sun 6 Jan 13
Very few people object to housing the truly needy and unfortunate. However, at every turn there are smug chancers who we all know are there for an easy ride and because they realise they can exploit the system, and the rest of the population, far too easily.
Sadly, they are not a small minority, whatever the mendacious political parties may tell you. They know that the balance of power in this country is now held entirely by the 53% of the electorate which is takes more from the state than they contribute. Behind closed doors, the politicians know better than anyone what's going on, but in public they have to continue the party line untruths. As ever, it's all about votes and they have no choice but to continue spending our money in order to buy them.
Russell Holland
says...
10:52am Sun 6 Jan 13
Empty Car Park
says...
5:43pm Sun 6 Jan 13
itsamess3
says...
6:09pm Sun 6 Jan 13
Thus there has to be a public record via a list of summoned persons.
house on the hill
says...
7:38pm Sun 6 Jan 13
But as Tim has said, the number who "play the game" is nothing like as small as politicians would have us believe. More and more are realising it actually does pay not to work and once there and once on benefit there is almost no incentive to work. If you are on benefits in a council house and continue to breed you just get given a bigger house and more benefits thank you very much! And what of those who had good jobs in their working life but instead of saving for their retirement they spent it all and are now totally dependent on the tax payer to support them. Why should the responsible subsidse the irresponsible?
The additional room reduction is well overdue, but if you feel that those who have more than they need should be penalised what about those who earn good money but are still allowed to pay £75 a week for a 3 bed semi at about half the rate the rest of us have to pay on similar incomes? and that only applies to those on benefits, those who pay their own rent but have more rooms than they need are still allowed to carry on as before. Crazy!
Means testing benefits is all very well in theory but in reality you already receive more in taxes from the better off and now you want to take away their child benefit and cold winter payments. If you feel those who can afford it have some sort of moral responsibilty to do more why are those on good incomes allowed to stay in council houses, its the same principals. Where is their moral obligation to help those less fortunate, they just stick 2 fingers up at them.
Yes we need to reform the welfare state and fast but we also need to teach responsibilty and not reward irresponsibility. And if people wont be responsible then sadly we will have to penalise them. The country is going broke and we cant afford freeloaders anymore. Living on benefits/social housing must never pay or be a lifestyle choice it should be a safety net for those in real need only and if those who can work choose not to then they should not receive tax payers money its an insult to those of us who are responsible and do work hard.
Getting back on topic as I said earlier, two thirds of tenants are on full or part housing benefit so any rent increases dont affect their wallets, but they do have a vested interest in voting for the higest rise as this will geve them the largest increase in the service they receive. What a completely ludicrous system, whats next council staff voting on thier own pay rises? The council should decide the rent rise and no one else not least because responsibility lies with the councillors to do it. But of course if they let others vote they cant be accused of making bad decisions as they just blame the tenants. Easy life!!!!!
Russell Holland
says...
8:15pm Sun 6 Jan 13
Councillors will decide the rent rise - this is a consultation. The final decision will be made by Council. I think consultation is appropriate.
LordAshOfTheBrake
says...
8:25pm Sun 6 Jan 13
You are spot on.
@Russell
You keep talking about a need for reform, but what are you actually doing about it? Personally, at the council level, and nationally at the party political level.
Russell Holland
says...
10:26pm Sun 6 Jan 13
The Council voted on the reform to the Council tax benefit before Christmas.
As a local Councillor we are fairly limited in our powers so far as benefits reform is concerned. I try to encourage balanced debate on the topic by posting on sites like this, discussing on the housing facebook page and when I do media interviews.
LordAshOfTheBrake
says...
8:46am Mon 7 Jan 13
So really all your actually doing is talking and debating....
From reading through the information, it would seem that if Swindon council increase rents then since housing benefit (which seems to be a sticking point) is paid from central government it could be used as a vehicle to increase monies from central government by the back door. Agreed it increases the tax liability on central government and the money has to be used on housing etc, but thats where creative accounting comes in!
house on the hill
says...
1:32pm Mon 7 Jan 13
Russell, I dont think I have ever been on the same page as a politician before, its quite a change!
itsamess3
says...
6:00pm Mon 7 Jan 13
Councillor Holland after all is an elected councillor and has the remit of housing issues--not party politics.
However - as he is also a well respected barrister with a vast knowledge of public law--he is a great asset to our council-despite being unable to give legal advice.
Few if any of our councillors take time to face the public on this forum as he has.
It is to my knowledge that he has when asked to resolve some complex issues for tenants he did so and very quickly and to both tenants and officers satisfaction.
This consultation is for the tenants to raise any issues and ultimately to ensure the funding meets the needs of those tenants which is a standalone account where no council tax is used to support it.
Several options are open to you-if you believe any councillor is not giving their best--vote them out-if you believe govt has got it wrong--contact your MP and present a case. If you believe govt has set an unfair budget for a council via grants etc as the more information that supports that notion could be looked into.
If you think you can do better than any councillor--put yourself up for election.
Russell Holland
says...
12:15am Tue 8 Jan 13
House - I think we have agreed on broad principles before - our differences of opinion seem to be more about the extent. Freezing rents may be popular with tenants this year - but we have to balance (1) keepin rents affordable (2) investment (3) debt repayment - taking into account both present and future tenants. Given that tenants who are not eligible for benefits - have the benefit of significantly cheaper than market rents - I don't think a modest increase is unreasonable. Even at our top increase it would be about £3 per week.
I agree that the scale and complexity of the welfare state makes any wholesale reform difficult. I know there is a lot of concern about universal credit -but it may simplify things - awaiting with interest the outcome of the pilot areas.
itsamess - thank you. The nice thing about housing - is that it is not (or should not be) that political. We have a budget to spend and we want to do our best for tenants. The officer team really are committed to doing their best and we do get good feedback from tenants.
Any tenants who are interested can join the facebook page.
For general info - the Housing Matters magazine is online as well for anyone to have a look at http://www.swindon.g
ov.uk/hs/hs-councilh
ousing/hs-getinvolve
d/Pages/hs-getinvolv
ed-housingmattersmag
azine.aspx
house on the hill
says...
2:29pm Tue 8 Jan 13
MrAngry
says...
5:20pm Tue 8 Jan 13
For example, the 'pay to stay' or fixed term tenancy issues effect those on the waiting list as much as those already housed. The wealthy union leader living in a cheap house gets a say but not the poor family stuck in a B&B.
Housing benefit is another issue that needs looking at.
When I was at university on a student grant (that ages me), I rented a cheap room in a grotty shared house at the cost of approx £30/week. I couldn't understand how some of my friends could afford to pay £60/week for much nicer accommodation. Then at the end of the year we were advised to claim housing benefit.
Anything over £25/week was handed back as benefit. There was no incentive to find an affordable room (quite the opposite). The irony was that more benefit actually went to students with wealthier parents as they could subsidise there kids until the benefit came through. Those from poorer backgrounds couldn't afford to pay up front.
Also private landlords had little incentive to reduce rent as the housing benefit covered any increase.
This was in the early 1990's, so the system may have changed, but it is an example of how benefits get manipulated by those who know how to play the game.
SpeakUp says...
3:38pm Fri 4 Jan 13