Agenda item

The Committee considered the undernoted report:

“1      Relevant Background Information

1.0     Parks houses are residential properties located on land for which the Parks and Leisure Department have operational responsibility. Parks and Leisure look after allocation of the dwellings to Council employees and have management responsibility for the properties.  Property and Projects Department provide advice in relation to reviews of rents and content of Tenancy Agreements.  The nature of the Tenancy Agreements for these houses provides less protection for occupiers than equivalent Housing Executive or private rented sector lettings. 

1.1     Legal Basis

         Legal Advice obtained requires the Council to restrict these lettings to Council employees. Letting on the open market or to those on housing waiting lists, would fall outside the Council’s functions and legal scope. Legal advice confirms that because the lettings are to employees and the wording contained in the ‘Tenancy Agreement’ states the occupancy is ‘at the will and during the pleasure of the Council’, the occupier has no legal interest in the property. This means the occupier’s status is more akin to that of a Licensee rather than a tenant. In addition the Council has no duty to re-house any tenant whose tenancy is terminated. The combination of these factors offers less protection to the occupier than a Housing Executive or private rented sector tenancy.

1.2     This report provides a review of rent on six properties.

2       Key Issues

2.1     Since 1991 Parks Houses rents have been calculated using the Northern Housing Executive Rents Point Scheme. Points are allocated based on the number of rooms and facilities and have then been  further adjusted by the Estate Management Unit to take into account the following factors:

1.       Location of the dwelling

2.       Access and surrounding environment

3.       Condition of the dwelling

4.       Security duty

5.       Security of tenure

2.2     Rental Adjustment

         Due to the unique situation of many of the Parks Houses it is considered appropriate to make adjustments for the factors listed above.  The rents are adjusted where houses are situated in cemeteries or more out of the way locations. Adjustment is also made where the occupier has a duty, under the tenancy agreement, to investigate any disturbance or unlawful entry occurring at anytime on the adjoining Council property, and report the same immediately to the police.    In many cases the tenant will also have the responsibility outside normal park opening hours (e.g. at night) to open, close and lock gates in order to gain access to, or egress from, the dwelling.    Adjustments are also made for the absence of parking arrangements where appropriate.

         Each time rents on these properties are reviewed the condition of each dwelling is considered and account taken of any renovations, improvements as well as any need for repairs.

2.3     Allocation of Property to Staff

         A number of criteria are applied to allocate the houses including: that the individual must be permanently employed by Belfast City Council and has to be bound by a tenancy agreement which was linked to their continuing employment. The tenancy agreement requires the individual to take on certain responsibilities specific to the property but in general they pertain to opening and closing gate, reporting incidents of ASB to the police and some minor maintenance of the gardens.

2.4     Summary of Each Property

         Information on the nature of each property as well as the existing and proposed rent has been circulated.   A summary of existing and proposed rents is also provided below for Committee's consideration. 

         Over the two year period since the last review, Housing Executive rents have risen by approximately 6%.   While the proposed revised rents take account of this increase the allowances applied to each house in terms of location and condition have also been reviewed.  The resultant increased rents while remaining relatively modest, and in some cases nil increases are considered to reflect the relative advantages and disadvantages of their sites, surrounding locations and tenancy constraints.

3       Resource Implications

3.1     Financial

         Subject to all the dwellings being let for the entire year, the proposed revised rents would increase the total annual rental income from the dwellings referred to in this report, from the current £17,784 to £18,512 per annum.

3.2     Human Resources

         No additional human resources required.

3.3     Asset and Other Implications

         Ensures appropriate rental levels for dwellings.

4       Equality and Good Relation Considerations

4.1     No known equality or good relation issues associated with this report.

5       Recommendations

5.1     Committee is recommended to approve the revised rents set out in the body of this report.”

            The Committee adopted the recommendations.