Council house tenants in Northumberland can expect to see a rent increase this year, leading councillors have warned. Social housing rent will be increased by CPI plus 1% from April – expected to be an increase of 4.8% this year.
It means the average one-bedroom house will see the rent increase by £192.40 per year. A five-bedroom home will see costs rise by £271.44 per year.
Councillors pointed out that the vast majority of council tenants will see the costs covered by increases to housing benefit. For those that do pay their rent, the council has a hardship fund to help those in most need.
Speaking at Tuesday’s meeting of the council’s cabinet, portfolio holder for finance Coun Nick Oliver said: “There will be some rent increases. I think every local authority will probably be applying the Government’s agreed increase of CPI plus 1%.
“For the people in households that are least-well-off, that will be covered by corresponding increases in household benefits. It won’t affect those people, but it allows the county council to continue to maintain the housing estate and provide good housing.
“There are a lot of pressures on these services. Post pandemic, we have seen increases in costs – material costs have risen and there have been higher pay awards so the cost of keeping the estate acceptable is higher.
“Our council rents are very reasonable and significantly below private sector rents, and even below private sector affordable rents. I think we’re providing a lot of good housing for people that need it the most at a reasonable, affordable price.”
Northumberland has 8,098 council houses within its housing stock. Across those homes, 18% of tenants are in receipt of Housing Benefit, 56% are in receipt of Universal Credit, and 26% are responsible for paying their rent in full.
The increase will be used to fund some “limited essential growth” in stock as well as delivering existing services and maintaining existing homes.
Cabinet member comment
Cabinet member for housing Coun Colin Horncastle said: “This happens every year and it is always a political point, but local authorities no matter the colour have got to do this every year. It is not a profit-making exercise – the money is ring-fenced for repairs and maintenance for our houses.
“The figure might seem quite high, but our rents are far lower than rents in the private sector and from registered social landlords. It is really good value for many people, which is why we have so many people who want to rent from us.
“Only a quarter of our residents pay the full amount themselves – three quarters are on some form of benefits. For the quarter that do pay the full amount, we have had a hardship fund and our officers are always there to help.
“It is something we need to do with the housing regulator overseeing everything we do. We have got to keep our properties to the highest possible standard.”
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