Hartlepool council house tenants face rent increase following two-year freeze

The aim is to support "ambitious" plans to increase the number of properties offered.

Hartlepool Borough Council chiefs said plans are in place to grow their housing revenue account (HRA) stock by 50% in the coming years to provide more high quality homes.

The council owns and manages 305 properties in the town with ambitions to increase this to 460 in the near future.

The finance and policy committee heard on Monday a rent increase is needed as part of the strategy to help ensure a “sustainable financial basis”.

Councillors voted by six votes to three to back increasing rents by 4.1% in 2022-23, in line with Government policy limits of 1% plus consumer price inflation.

Cllr Shane Moore, the leader of the council, said even with the rise the council would “still be cheaper than social landlord competitors” after previously having a two-year rent freeze.

The independent union representative said: “As a council we are fully behind providing good quality affordable council houses, especially when there is some substandard housing, especially in the private rented market.

“If we want to be bold and we want to start delivering more and more properties and getting people out of substandard properties then we need to take difficult decisions.

“It means making sure the HRA is in a good, healthy place to be able to continue building those homes.”

Council officers stressed the Government will provide additional funding for tenants receiving housing benefit and Universal Credit, which is likely to cover “all or part” of the rent increase for two thirds of tenants.

Labour councillors had voiced concerns the rise could have a detrimental impact on some, especially those just missing out on claiming benefits.

Cllr Brenda Harrison said: “That is a bit of a worry as to whether they will manage with all the extra costs that there are at this particular time.”

However Chris Little, director of resources and development, said following a two-year rent freeze the increase is key to help ensure a robust business plan.

He said: “If we keep forgoing income year after year by freezing rents, the housing revenue account will become unviable.”

The recommendation will go before next week’s full council meeting for approval.