Council rents may rise

Council tenants could face rent rises of up to nearly 10%.

Under proposals to be considered by Newark and Sherwood District Council cabinet on Thursday tenants would see an average increase of 8.7%.

The lowest increase would be 7.2% and the highest 9.7%.

One councillor said the inflation-busting rises would be unacceptable to tenants.

The proposals were presented to the council’s overview and scrutiny committee on Wednesday ahead of consideration by the cabinet, where the recommendation is for approval.

The rent rise is being considered because of changes in the way the Government allocates housing money to councils.

Councils can now keep all the rent they collect, and decide exactly how they will use it for modernising, maintaining and managing housing stock.

That work is done for the council by its housing management organisation, Newark and Sherwood Homes.

The council says a bigger increase in 2012-13 will mean lower increases after that.

Mr John Peck, who represents Edwinstowe, said such a big rise would not be acceptable to tenants in the district’s 5,500 council properties.

“I can’t see myself supporting any situation that would involve a rent rise of 8.7%,” he said.

“It is well above the rate of inflation and making comparisons with the private sector will not wash with tenants. They are struggling and this will only make their situation worse.”

The council says 68% of tenants receive some financial assistant with their rent, and 69% of those have it paid in full, meaning they will not be affected by the increase.

Mr Bruce Laughton, the cabinet member for health and homes, said: “It is unfortunate that we are being forced to increase our rent levels in line with Government policy, but by implementing this increase now future increases should be less drastic so we can continue to manage and maintain tenants’ homes to the standards they expect.

“Council house rents will still offer fantastic value. For instance, the monthly rent on a three-bedroom semi-detached council home in Farndon is almost £200 a month less than renting the equivalent privately.”

The largest weekly increase in rent for sheltered accommodation would be £6.90 for a three-bedroom semi in Collingham.

It would be a £7.57 weekly increase for a five-bedroom detached property in Newark.

Examples of proposed monthly rents are £340 for a three-bedroom semi in Farndon; £320 for a three-bedroom terrace in Newark; £315 for a two-bedroom semi-detached bungalow in Farndon; and £250 for a one-bedroom flat in Newark.

The committee also proposed changing payment to 52 weeks’ a year rather than 48. Traditionally there has been a break for the Christmas and Easter holidays.

If approved, the changes would come into effect in April.