Rise in rents confuses

Council officers want more details about a Government announcement to halve a planned rent increase for tenants.

Newark and Sherwood District Council is unclear about what financial support will be given to enable the rent increase to be cut.

In January the council set its rent increase in line with the Government guideline of 6.2%.

The council’s hands are tied when setting rent rises as the Government controls the formula on which the increase is based.

The formula aims to equate the cost of council house rents with those in the private sector.

Council tenants have already received letters telling them what the rent rise will be for the coming financial year.

The council is required to give tenants 28 days’ notice of any rent increase, meaning the latest date letters could be received was March 4.

The housing minister, Mrs Margaret Beckett, announced that the guideline increase was being halved to 3.1% on Friday — two days after the deadline had passed.

She said: “We are facing challenging economic times and it is right that this Government offers real help now to council tenants.

“We have listened to what councils and their tenants have said to us about the planned rent increases, and we are determined to help tenants get a fair and affordable deal.

“Ultimately, it is for each council to take up this offer of support, but I would expect them to ensure their tenants receive the full benefits.”

The district council’s cabinet portfolio holder for homes, Mr David Payne, said: “Any changes to the rent levels will require significant additional work to update rent accounting and housing benefit system, and to notify tenants of the new rent and housing benefit levels.

“Officers are currently seeking clarification from the Department of Communities and Local Government as to the funding of the costs of the additional work.”

He said it was likely that a special meeting of cabinet would be needed to consider the issue.