Council announces extension of rent payment holidays

Birmingham City Council’s Cabinet is set to approve a further 2 weeks of rent payment holidays during this financial year, on 13 July.

Council tenants will now have 4 rent payment holiday weeks during 2009/10 (2 weeks in December 2009 and 2 weeks at Easter 2010). This is an extension of the policy introduced with the support of tenants in 2008 and will provide help to tenants during the economic recession and allow for flexible budgeting during expensive periods of the year.

The overall rent increase for this year will also be reduced by 50% compared to the initial proposals considered by Cabinet in February 2009 and this was a result of pressure from local authorities, including Birmingham, on the Government to reduce the national formula rents.

In addition, Birmingham City Council will be introducing an investment programme to improve the communal areas, furniture and fittings in all Sheltered Accommodation for Older People. An investment programme of £10.8m will be commenced and completed over 2 years. This will be funded through affordable prudential borrowing recovered through service charges. The vast majority of tenants will receive additional housing benefit for the new service charges.

Councillor John Lines, Cabinet Member for Housing, said: “I am pleased to introduce further rent payments holidays to help our tenants and to introduce an investment programme to upgrade our existing Sheltered Accommodation. These policies have been introduced with the support of our tenants.

“I would have preferred not to increase rents at all as the Government claws back all the income from our rent increases through the national finance system and this year tenants will be paying back £57m from their rent income.

“I’m pleased that my lobbying of the Government, alongside our tenants and other local authorities, to secure a major reform of the existing financial framework has been successful. I hope the changes will be introduced as soon as possible”.