Housing consent fee increase

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A decision made 3 February 2010 regarding: Housing consent fee increase - Order 2010.

Decision Reference: MD-H-2010-0011
Decision Summary Title :	Increase in fees for consents issued or revised under the Housing (Jersey) Law 1949		Date of Decision Summary:	6 January 2010
Decision Summary Author:	Director, Population Office		Decision Summary: Public or Exempt? (State clauses from Code of Practice booklet)	Public
Type of Report: Oral or Written?	Oral		Person Giving Oral Report:	Director, Population Office
Written Report Title :	N/A		Date of Written Report:	N/A
Written Report Author:	N/A		Written Report : Public or Exempt? (State clauses from Code of Practice booklet)	N/A
Subject: Housing (Fees) (Amendment) (Jersey) Order 2010
Decision(s): The Minister made the Housing (Fees) (Amendment) (Jersey) Order 2010 to bring about an increase in fees for applications for consents and variations of consents, in pursuance of Article 13 (2) of the Housing (Jersey) Law.
Reason(s) for Decision: The fee for a consent for a sale or transfer of land or a registered contract of lease required under the Housing (Jersey) Law, 1949, has not changed since the fee was first introduced in August 2004. The fee is designed to assist in the recovery of the costs associated with the administration of the Housing (Jersey) Law, 1949, including the issuing of consents thereon, and the Minister considers it appropriate that the fee for each consent issued be increased from £50.00 to £60.00, being consistent with inflation since 2004. In particular, it is considered that this modest increase in the fee in absolute terms is reasonable in relation to the overall cost of purchasing a property, also noting that the cost of issuing consent to a sale or transfer or contract lease has previously been agreed as a matter for the person or body to whom consent is granted, and not a cost that the general tax payer should incur. The increase in fees also relates to the cost of issuing a revised housing consent, for example, to revise the conditions as to which class of qualified person can occupy the property, or for a change in details, including sale price, prior to contract, and this revised consent fee will be increased from £20.00 to £25.00 Some financial details are as follows: Budgeted consent income: 2007 = £136,000 2008 = £113,000 2009 = £96,000 (falls since 2007 due to slow down in housing market) 2010 = £132,000 (budget) (some moderate increase in housing market activity expected + increase in fee levels) Purchase consents actually issued: 2007 = 2,720 consents 2008 = 2,260 consents (reduction due to slow down in housing market) 2009 = 2,000 consents, expected Gross staff cost of administering the Housing Law: 2008 = £486,000 2009 = £448,000 (reduction compared to 2007 due to planned staff reductions) 2010 = £470,000 (budget) (increase compared to 2009 due to investment of savings from planned staff reductions in 2009 into increased compliance activity) NB. In addition to purchase consents, the costs of administering the Housing Law also include issuing lease consents, qualifying individuals, and a variety of related tasks.
Resource Implications: There are no resource implications for this decision. The increased charge will maintain meeting the costs of administering this legislation.
Action required: The approval of the Minister for Treasury and Resources to be sought given that, under relevant Financial Directions, the increase in fees will be more than 2.5%; To notify the Greffier of the States and the Law Draftsman that the Order has been made and to forward the signed and sealed Order to the Publications Editor, States Greffe, for notification to the States.
Signature:		Position:
Date Signed:		Date of Decision (If different from Date Signed):