Council News

Council house rents to rise

THE EAST RIDING COUNCIL meets on Thursday 10th February 2011 at County Hall, Beverley to set its budget for the coming year. It will discuss a recommendation that will raise council house rents from April this year.

The average weekly rent is anticipated to be £68.92 – an average increase of £4.89. In practice this means that most council tenants should expect a rent rise of between £3.62 to £5.99 a week.

The rise is being attributed to preparations necessary for new Government rules that will determine how a council sets its housing revenue budget. Legislation will scrap the housing revenue account, under which rents are passed on to the Government and then redistributed back to councils, and replaces it with a self-financing system, which will allow councils to retain their own rents and manage their housing stock.

Supporters say that the new system will lead to more certainty over income raised from rents and enable councils to plan more effectively for the future. Tenants groups will be concerned about rent rises both initially and in the longer term.

The Rent Rebate system will remain and over 7,400 tenants on low incomes will continue to receive help towards their rent. The East Riding have also pointed out that tenants will be not see their council tax rise this year.

Find the Agenda and supporting papers for the meeting at the East Riding Council website.

Image: New council homes being built in Hedon

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