Issue - meetings

that the Council moves to a standard 52 week rent collection cycle from April 2022.

Executive considered a report in relation to moving from the current 48 week per year housing rent collection cycle to a 52 week rent collection cycle.

The Council’s tenancy agreement contained a clause which stated that tenants must pay their rent weekly in advance every Monday.  The annual rent for a Council property was currently divided by 48 weeks instead of 52.  This had the effect of making a tenant pay more on those weeks in which rent was charged than they would if it was spread evenly across all the weeks in the year.

It was proposed to move from the 48 week rent collection cycle to a 52 week rent collection cycle, which would align the rent account payment requirements to Universal Credit payment cycles, and tenants would also see a weekly reduction in their rent.  In turn, this should have a positive impact upon the level of rent debt and also reduce levels of stress and anxiety for those who are finding it hard to pay on time.

No statutory consultation was required for the rent collection proposal, however, tenants would be notified in advance of the changes to ensure minimum disruption.

Members noted that some tenants may still wish to pay their rent over a 48 week period.

Moved by Councillor Sandra Peake and seconded by Councillor Duncan McGregor

RESOLVED that the Council moves to a standard 52 week rent collection cycle from April 2022.

(Assistant Director of Housing Management & Enforcement)

REASONS FOR RECOMMENDATION(S)

The main rationale for the change is to allow those in receipt of Universal Credit to spread the cost of their rent throughout the year and to ensure that their rent accounts are kept up to date as much as possible.

There is also a need to ensure that a rent payment culture is embedded in all aspects of housing service delivery. There is a tension between having weeks which are called “rent free” in an era where Officers are trying to encourage tenants to establish a payment habit and to keep their accounts up to date. By setting the expectation of a payment for every week of the year, it would minimise the situation where a tenant could claim that they had been under the impression that they were not required to pay rent because there had been a rent free week, or that their debt will be cleared because they intend to use the rent free weeks as an opportunity to make additional payments.

ALTERNATIVE OPTION AND REASONS FOR REJECTION

To do nothing is rejected because the proposal to move to a 52-week rent collection pattern will enable a more transparent service for tenants, will allow for better budgeting (aligned to benefit payments) and is consistent with most other household bills as well as providing a more efficient collection process for the Housing Service