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Inflation busting rent hike for council tenants

Monday, 09 January 2012 15:30

Members of Selby District Council's governing executive committee have voted to increase housing rents in the Selby District by 7.9% from April.

 

The move, which critics say will unfairly target some of the area's poorest families, is expected to generate an additional £844,000 of revenue for the 2012/13 financial year.

 

The above inflation hike will see average rents in the area rise from £70.15 to £75.69 per week.

 

One council tenant, who asked not to be named, said, 'This is the last thing we need right now.  Both me and my partner work and have not had a pay rise for three years.  The bills only get more expensive and now we have to find more for the rent too.'

 

But the council said that the rent rise is necessary for it's rents to be in line with those of local housing association stock due to policies set by Central Government.

 

In a report which went before the last week's committee, the council's Senior Finance Officer, Kevin Ross said, 'Under the Government’s rent restructuring policy, formula data is provided by the Department for Communities and Local Government (DCLG) to ensure similar rents for similar properties in similar areas, are calculated over a transitional period. When convergence is achieved Housing Associations and Local Authorities will use the same formula for setting rent levels, which will ensure that tenants pay similar rents for similar properties regardless of whether the landlord is a Registered Social Landlord [Housing Association] or a Local Authority.'

 

Convergence with the housing association rent levels is expected to by completed in the 2015/16 financial year meaning similar, above-inflation rises are expected to follow over the next few years

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Last modified on Tuesday, 13 March 2012 13:46
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