Issue - meetings

To receive a report from the Corporate Manager for Public Health, Regulation and Housing outlining the Mid Devon Housing (MDH) approach to renting out garages, garage ground rent plots (GGRP) and car parking spaces that it owns.  

The Group had before it a report * from the Corporate Manager for Public Health, Regulation and Housing regarding a review of the policy outlining the Mid Devon Housing (MDH) approach to renting out garages, garage ground rent plots (GGRP) and car parking spaces that it owned.

The following was highlighted within the report:

·       This was a financial policy around rent setting, it was not a new policy. It reflected how the Government had wanted VAT to be treated. The HMRC had made lawful changes and local authorities were now required to update their policies to reflect these.

·       As part of this review the policy had been better defined with greater priority given to blue badge holders and to people who lived in the same or adjoining street as the asset.

·       As part of the review the rent payable by charities and not for profit organisations was investigated. It was due to different rates being charged for different organisations which had led to an administrative burden on the service. To bring consistency, the revised policy stated that garages, GGRP and Car Parking Spaces rented by charities and not for profit organisations would be charged at the same rate as MDH dwelling tenants with VAT added as required.

Discussion took place regarding a general need for Members to better understand the situation regarding Council owned garages, GGRP and car parking spaces for example, how many had it developed, how many had or were planned to be demolished, how many had or were planned to be improved? It was explained that this kind of information was already held by Mid Devon Housing (MDH) and this could be shared with Members providing an opportunity to gain a better understanding of the current situation and plans for the future. This was requested as part of a need for a better overall understanding of asset management. It was AGREED that a workshop / briefing would be set up to allow this information to be discussed alongside the next meeting.

RECOMMENDED to the Cabinet that the updated Garage, GGRP and Car Parking Space policy and Equality Impact Assessment contained in Annexes A and B respectively be adopted.

(Proposed by Cllr J Cairney and seconded by Cllr S Robinson)

Reason for the decision

The administrative burden of renting garages remained a significant cost to offset against the rent generated. The aligning of rents for charities and not for profit organisations would help alleviate the financial costs in administering the policy. MDH also had to legally comply with the VAT Government and Public Bodies VATGPB8350 - Other local authority activities: housing and community projects: property improvement grants.

Additionally, failure to provide housing management staff with the appropriate policies could result in a less consistent and effective service and failure to collect rental income could impact the ability to fund necessary management and maintenance activities. 

Note: * Report previously circulated.