Housing Cabinet Proposes Rent Freeze
Birmingham City Council is proposing a rent freeze to be implemented under new reforms to take place in April this year which will see rent for October 2012 frozen at October 2011 levels.
The recommended freeze on rent for October 2012 - the period when changes to tenants' rent come into effect - will also include a freeze on service charges for the second consecutive year. This includes concierge, caretaking and cleaning that are provided to tenants.
All councils across the country will have the flexibility to set their rents from April 2012 as part of the finance reforms that are being introduced by the Government.
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Council Plans to Break Rent Increase Guidelines
Cabinet members of 17,000-homes Southampton Council have agreed that, from April 2013, rents for some homes may rise by up to £2.50 per week on top of any inflation-linked increase. This will lead to it letting homes in line with a national formula sooner than proposed in Government guidelines for rent increases.
Both councils and housing associations began moving towards a national formula, based on local earnings and property prices, in 2001. The intention is that tenants will pay the same 'target' rent for similar properties, regardless of their landlord. Initially planned to take ten years, the process will continue until at least 2015/16.
The decision by Southampton Council contravenes guidelines set by Labour in 2001, which state rises needed for rent restructuring must not exceed £2 per week on top of the inflation-linked increase. It will also follow a rent increase averaging 7.5%, or £5.26 a week, from April this year.
The Council hit problems after reducing the target rent for its flats while increasing the target rent for houses, because tenants had complained there was not enough difference between the rents payable on the two types of property.
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Birmingham Council Launches the Country's First Veterans' Home Buy Scheme
Birmingham City Council has become the first local authority in the country to launch a home buying scheme to help ex-service personnel gain a foot on the property ladder.
The Veterans' Homebuy scheme will allow former servicemen and women the chance to own their own home with the help of the Council, which will offer assistance with a shared equity loan. The loan will enable those who have served the opportunity to purchase property through the Birmingham Municipal Housing Trust - the Council's house building initiative.
Recently, Birmingham City Council was invited to the Ministerial Housing Summit, where Housing Minister, Grant Shapps MP, highlighted the difficulties facing ex-service personnel who want to buy their own home. Issues such as credit ratings scores and lack of a standard home postcode were two of the barriers faced by service personnel returning from overseas duty.
Cllr John Lines, Birmingham City Council's Cabinet Member for Housing,said:
"Buying a house has been difficult for ex-service personnel because of the way mortgage application systems operate. But I'm sure the assistance of a loan through the Council's scheme will make purchasing a property much easier.
"The scheme is a natural progression for the Council and follows the 12 new Homes for Heroes that are currently underway in the City."