Review of Residential Rent and Service Charges 1 April 2017

In line with the approved policy the MPS have undertaken the annual review to ensure that residential rents for officers who joined after September 1994 and are in occupation of residential accommodation, and for service charges for officers in section houses remain consistent with the change in Registered Social Landlords (RSLs) rents charged in London Boroughs.

Based on rental data relating to London based RSLs from the Homes and Communities Agency (HCA) the DMPC is now asked to approve the proposed rents set out in paragraph 2.2. If implemented the effect of the proposed increase will be to raise an additional £20,475 per annum.

The Deputy Mayor for Policing and Crime is asked to approve the proposed rent and service charge levels as set out in paragraph 2.2.

1. Introduction and background

1.1. The withdrawal of rent free residential accommodation for newly appointed officers was implemented with effect from September 1994 arising from the Sheehy Report.

1.2. The previously agreed policy is to annually review the rents and service charges for officer accommodation in line with the change in rents charged by Registered Social Landlords (RSLs) who operate in London Boroughs.

2. Issues for consideration

2.1. Currently there are 16 officers (19 last year) who have an assured shorthold tenancy or room licence, and a further 66 (226 last year) who occupy Section House accommodation. Further reductions in officers using this accommodation, which may impact on the income generated, may arise due to recruiting from the London-only area.

2.2. Based on HCA rental data for the increase in social housing rents across London Boroughs the proposed rent levels are

2 Bedroom Unit

3 Bedroom Unit

4 Bedroom Unit

2.3. By way of comparison with private sector rents the average monthly rent for house/flats across London and in the City of Westminster where the core residential estate is located are set out below:

Bedroom London-wide City of Westminster

2 £2,633 £4,916

3 £4,876 £8,381

4 £8,021 £10,454

Section House

3. Financial Comments

3.1. Based on the current level of tenants residential rent income is expected to be £138,930 in 2017/18, an increase of £5,475 from 2016/17.

3.2. Based on the current level of section house tenants section house service charge income is expected to be £525,000 in 2017/18. An increase of £15,000 from 2016/17.

4. Legal Comments

4.1. Officers living in MOPAC houses or flats and section house rooms occupy under either an assured shorthold tenancy or a room licence, respectively.

4.2. Assured Shorthold Tenancies have a statutory basis that originates from the Housing Act 1988 (as amended). Rent under the standard Assured Shorthold Tenancy and the standard licence for a section house room may be reviewed in accordance with the rent review clause(s) incorporated within the tenancy/licence document, provided adequate notice is given of the increase and the rent increase is in line with the market rate (and is not excessive). The report confirms the proposed rental increases are in line with charges made by other Registered Social Landlords.

4.3. The recommendations are within the DMPC’s broad powers to do anything that is calculated or facilitated or conducive to its functions, and the increased rental charges supports the maintenance of an efficient MOPAC estate.

5. Equality Comments

5.1. The MPS policies on equal opportunities and diversity apply to the content of the rent review and the management of the residential estate. The level of rent is related solely to each property’s value and not the occupying.

5.2. There are 82 Police Officers who will be directly affected by this rent review. The Police Federation has been notified of these proposals and has offered no comment in regard to the increase to the rentals.

6. Background/supporting papers

6.1. None.