Rent increase of 7.7% recommended by Newark and Sherwood District Council cabinet for its council housing

A council is recommending a 7.7% increase in rent for its tenants.

Newark and Sherwood District Council’s cabinet met to discuss a report into their Housing Revenue Account budget for 2024/25 and subsequent rent setting.

Any increase in rent would help toward matching the increase in the cost of running and maintaining council properties and associated services.

This January, the Regulator of Social Housing set out the policy for April 1, 2024, to March 31, 2025, to set rents to Consumer Price Index of 6.7%, plus one per cent.

As there was no proposal for a rent cap, this gives the council a provision to increase rent by 7.7% from April 1 — although increases of 5% and 7% were also looked at.

The council’s average social housing rents, of £87.10, are significantly lower than those in the private rented sector in Newark and Sherwood, at £149.54, or nationally, at £221.54.

The report highlights a snapshot of data taken in November 2023, which estimated that of the 5,437 current tenants, 68% received some sort of help from benefits towards paying their rent — a number which has since increased by 3%.

Additional pressures brought on by the covid pandemic meant that there was a significant increase in the number of council housing tenants claiming Universal Credit, jumping from 95 in June 2018 to 1,720 in November 2023.

The council say that the implementation of the proposals are in line with government legislation and will directly support their objectives in providing good quality housing which is well maintained.

Portfolio holder for housing, Lee Brazier, said: “This last year we have seen a lot more legislation come into place and we have a lot more pressure on us from the regulator, right across the housing sector, which is one of the reasons for this increase.”

It was recommended that the Housing Revenue Account budget for 2024/25 is approved, including an increase of 7.7% in rents of all properties starting from April 1, 2024.

The cabinet made the recommendation for full council to make a decision on at its meeting on February 13.