Hartlepool Borough Council 2.7% council home rise is approved

The rise was recommended by Hartlepool Borough Council officers for the 356 properties under the local authority’s housing revenue account (HRA).

Around two thirds of tenants will have all or part of their rent increase funded by the Government, which will provide additional funding for those receiving Housing Benefit and Universal Credit.

The 2.7% increase for 2025-26 is the maximum allowable under current national policy.

The rise was approved by 24 votes to two, with one abstention, at the latest meeting of full meeting of the council.

Council leader Councillor Brenda Harrison said: “Without this proposed rent increase the HRA budget becomes unsustainable and would go into deficit.”

She added the rise will be “in line with other social housing providers”.

Council officers previously highlighted how there have been “several factors which have put the HRA under extreme pressure”.

These include new government policies, inflation, rising repair costs and the price of damp and mould safeguarding measures.

An officers’ report said: “The overall challenge for the HRA is to maintain financial viability while delivering good quality homes and services to tenants.

“The HRA is a separate ringfenced account and all costs must be met from rental income. The HRA is required to be self-sustaining and not go into deficit.”

Council officers also noted rents were frozen in 2020-21 and 2021-22 while 2023-24 saw a 5% rent increase, which was below the maximum level at that time of 7%.

Their report added: “The impact of this reduced rental income continues to negatively affect the health of the HRA.”