Senior councillors back 7.7% rent rise for council homes in Stoke-on-Trent

By Kerry Ashdown - Local Democracy Reporter

17th Jan 2024 | Local News

Councillors are proposing a 7.7% rent increase for all council houses, meaning the average rent will increase by £6.17 a week (Nub News).
Councillors are proposing a 7.7% rent increase for all council houses, meaning the average rent will increase by £6.17 a week (Nub News).

Senior councillors have said that the authority's homes remain good value for money despite a proposed rent rise of 7.7%.

The average rent for a council house will go up by £6.17 a week, to £86.90 across 52 weeks, meaning an average bill of £94.14 in each of the 48 weeks tenants pay rent.

Council housing and garage rents will go up from April in line with the September consumer price index rate of inflation, plus one per cent. But cabinet members who backed the rent rise on Tuesday said the extra income was needed to help fund investment in housing stock to improve conditions for tenants.

Last year the Labour administration that took control of the authority in May announced that more than 14,000 council homes in the city would benefit from upgrades over the next five years. This includes work to tackle damp and mould issues.

Council housing and garage rents will go up in April in line with the September consumer price index rate of inflation (Nub News).

Rent and service charges go into the council's Housing Revenue Account, which is separate from the authority's other funding pots, and cannot be used for other service areas, cabinet members were told on Tuesday. Council leader Jane Ashworth said: "For instance, none of the rent rise can be used to plug the gap between expenditure and income from car parking in the city centre."

Councillor Chris Robinson, cabinet member for housing, regeneration and planning, said that the authority was investing £117m in improvements to its housing stock. "Without setting the rents proposed we will be unable to bring housing stock up to standard", he added.

"In Stoke-on-Trent we still provide some of the lowest rents in comparison with other places. A £100,000 financial independence fund is available to support tenants who are experiencing financial hardship."

Councillor Sarah Hill said: "I think an excellent job has been done on trying to get the balance right between getting money in to make improvements and bearing in mind the impact on our residents. I think this represents very good value for money compared to what's happening elsewhere."

Councillors are insisting that the authority-owned homes remain good value for money (Google).

Counciillor Finlay Gordon-McCusker said: "We speak a lot about value for money and this is really important because we are putting in that £117m investment in bringing council stock up to a decent standard. I hope people who live in council properties will be able to see value for money and what their rent is delivering."

Cabinet members have recommended the rent increase for approval by the full council as part of the budget setting process. Tenant service charges are also set to increase by 7,7%.

A report to Tuesday's cabinet meeting said: "The council has taken a measured approach to the proposed increase in its rents, considering the rising and unpredictable costs and impacts on its tenants within the current financial climate, alongside the need to operate a balanced HRA budget. In setting its rental increase for 2024/25, the council has regard to tenants' affordability, the levels of Housing Benefit/Universal Credit available, and how its rents compare to other social housing providers, both in the city and across the West Midlands.

"Should rents be increased by anything less than the 7.7% proposed, then consideration would have to be given to further reducing the level of service, such as day-to-day repairs and void standards, or major programmes of work. In recognition of the current cost of living pressures impacting on our city's residents, ongoing support is made available through a range of services; supporting residents with claims for Housing Benefit, Council Tax support and hardship advice, Discretionary Housing Payments and the Financial Independence Fund, alongside a commitment through its Help is at Hand campaign for every resident to have access to a 'financial MOT'."

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READ MORE: Man arrested after stealing items and threatening staff at Stoke-on-Trent store

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