Council house rent rise agreed in Hartlepool as part of plans to increase housing stock

Accommodation bills are set to increase by 4.1 per cent, following a two-year freeze, after Hartlepool Borough Council unveiled plans to grow its housing revenue account (HRA) stock by 50%.

The local authority currently owns and manages 305 properties in the town and hopes to increase this to 460.

Council chiefs said a rent increase is needed to help ensure the HRA remains sustainable and financially viable.

At Thursday’s full council meeting, councillors voted by 15 votes to 13 to increase rents in 2022/23, in line with government policy limits of 1% plus CPI inflation.

Council leader Shane Moore said: “We froze rents in the last two years and we were the only North East council operating a HRA to do so.

“We cannot continue to freeze rents if we want to roll out our HRA to provide more good quality homes for our residents.

“I fully appreciate that households are facing inflationary pressures, however after freezes for two years we cannot maintain that position if we want a sustainable HRA.”

It was noted the government provides additional funding for tenants receiving housing benefit and Universal Credit, meaning around two thirds of tenants receive “all or part” of their rent paid for.

Independent Union representative Cllr Moore added: “We have hundreds if not thousands of residents of this town currently living in substandard privately rented accommodation that are charged much higher rent.”

Of other North East councils operating a HRA, three have approved a 2022/23 rent increase of 4.1% and two have proposed increases of 4.1%, subject to final approval.

Labour councillors voted against the rise, voicing worries it could worsen poverty in the town.

Cllr Pamela Hargreaves said residents are already facing increased council tax, national insurance, cost of living and more.

She added: “I do absolutely share the aspiration to build more council houses but that cannot be the target that we chase at the expense of the people who live in those homes.

“We are increasingly putting the burden on the people who can least afford to pay for these things.”

Council finance officers previously warned if rent freezes continue “year after year” the HRA “will become unviable”, with the account reliant on rental income to fund revenue costs.

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