RENT RISE 25% : pips to squeeze =

RENT RISE 25% : 
IF NO ONE SHOUTS AND OBJECTS, IT GOES THROUGH.........................



ECONOMIC DEVELOPMENT & CULTURE COMMITTEE
Agenda Item 52
Brighton & Hove City Council
Subject: Fees & Charges 2015/16 –Assistant Chief Executive Directorate
 Date of Meeting:15thJanuary 2015
Report of:Assistant Chief Executive
Contact Officer:Name: Ian Shurrock
Toby Kingsbury
Tel:29-208429-2701
Email: ian.shurrock@brighton-hove.gov.uk
toby.kingsbury@brighton-hove.gov.uk


SEAFRONT (please see Appendix 3)
Beach Chalets

3.4.2 There are 105 brick built beach chalets in Brighton & Hove which are owned by the council and rented for an annual fee by tenants. The council is responsible for the on-going maintenance costs of the chalets and utility charges. The demand for beach chalets is extremely strong and the waiting lists have been closed since 2003 with some people having been on the lists for over 10 years.
3.4.3 In April 2011, to assist with the reduction in the waiting lists, it was agreed that all new tenants have 5 year fixed term tenancies and must be residents of the city, a pricing differential was introduced between residents and non-residents, and prices increased from a low base of 10% (with an inflationary increase in 2013/14). This has resulted in a small number of new tenants (4 or 5 each year) but not sufficient to re-open the waiting lists. Therefore, the following proposals are aimed at both generating additional income as a budget saving, meeting increased costs e.g. utilities, and increasing the turnover of tenants to enable more residents to enjoy these most sought after amenities.
3.4.4 The proposal is for a 50% increase on the current price spread over the next 2 years, starting with a 25% increase in 2015 /16 with the remaining 25% the following year. For fixed term tenancies in Saltdean & Rottingdean this equates to a charge of £1.77 per day or approximately £10 per month extra in year one, with a further £10 per month increase in year 2. For fixed term tenancies in Hove this equates to a charge of £3.03 per day or approximately £18 per month extra in year one, with a further £18 per month increase in year 2. This stepped increase will enable chalet tenants to make an informed decision over next summer as to whether they are maximising the use and value of their chalet. This also allows for the tenant to hand the chalet back before the final 25% increase the following year.

3.4.5 Comparisons with chalets in other seafront locations and with a similar type of facility are not easy to make. The best comparator that has been identified are the brick built chalets in Worthing which have water but no electricity supply. The charge for these beach chalets is £1,160 per annum for the current financial year. The proposed increased charge for 2015/16 for the Hove chalets compares very favourably with Worthing, as the Hove chalets have an electricity supply met by the council.