Fair Rents 2006.

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A decision made to agree that there will be no increase in the fair rents in 2006.

Subject:	Fair Rents 2006
Decision Reference:	MD-H-2006-0004		Exempt clause(s):	Public
Type of Report: (oral or written)	Written		Person Giving Report (if oral):
Telephone or e-mail Meeting?	n/a		Report File ref:
Written report – Title	Fair Rents 2006
Written report – Author (name and job title)	I K Gallichan Acting Chief Officer
Decision(s): Housing Minister has agreed that there will be no increase in the fair rents in 2006 and that an acceptable long term solution must be found as to the most appropriate body to set “Fair Rents” in the future. It is acknowledged that the Housing Minister is not the appropriate person to be setting these rents in the future.
Reason(s) for decision: The previous Housing Committee decided not to increase fair rents for 2005. The Housing Minister is aware that Housing Trusts need on average, an increase in their rents of 3.5% per annum in order to meet their financial commitments. Some ‘cushioning’ has been built into the system and therefore they should be able to sustain another nil increase this year, though a review of rent setting is required in order that this situation is where possible, avoided in the future, albeit that matters are heavily influenced by the housing market prevalent at the material time.
Action required: The Housing Minister has agreed that there will be no increase in the fair rents in 2006 and that an acceptable long term solution must be found as to the most appropriate body to set “Fair Rents” in the future.
Signature: (Minister/ Assistant Minister)		Date of Decision: