Purpose

Council home rent levels are set in accordance
with the formula in the national Rent Standard which recognises the
need for some local flexibility to take into
account local pressures. Council rents are generally set as
“social rents” which are expected to be between 40 and
60% of market rent in a locality. Current social council rents in
Ipswich are at around 40% of market rent. Rental income funds the
upkeep of council housing and the development of new council homes.
The costs of maintaining council housing including both reactive
and planned maintenance, meeting new fire and building safety
standards and regulatory requirements has increased significantly
and continues to increase.
 
The Government allows flexibility to increase
rents for new tenants up to 5% above formula rent for general needs
tenancies or 10% above formula rent for supported housing,
including Sheltered Accommodation. It is proposed to introduce a
Rent and Service Charge Policy which increases rents for new
tenants by up to 5% above formula rent for general needs tenancies
or 10% above formula rent for supported housing, including
Sheltered Accommodation.
 
The Council requires the services of an
external consultancy to carry out a review of the Councils approach
to service charges and rent flexibility in the general needs
Council Housing portfolio.
 
A procurement exercise was undertaken in
August 2024. However, despite receiving two tenders neither were
compliant with the Council requirements.

Decision

To waive requirements within the Contract
Standing Orders to conduct a competitive purchasing process for
this requirement in accordance with the Council’s
Constitution, Part 4, Section 7, Contract Standing Orders, para
3.10 and Part 3, Section 5, Officer Delegation Scheme, para
9.1.
 
Reason:
That further delay in awarding a contract
would be likely to lead to financial loss and it is economically in
the best interests of the Council to proceed with an award without
further delay.
 
Decision:
To award the contract to Ark Consultancy. The
contract will be based on a 12 month initial term with an optional
extension of 12 months. The estimated contract value is
£14,000.
 
Reason:
Ark Consultancy have the requisite experience
of delivering on the Council’s requirements and meet all of
the compliance related elements that satisfy the Council’s
requirements.