Hartlepool housing plans delayed amid row over rent increases - chiefs urged to explore other funding options

Hartlepool Borough Council is planning to expand its housing stock by more than 50% over the next five years.

Plans would be funded from a combination of external investment and borrowing and allow the council to deliver 164 new homes over the next five years as part of its social housing stock.

But also included was a proposed 2.7% rent increase for existing properties in 2020/21, which would help fund the new homes, equating to an average weekly rent increase of £2.22 for a two bed property and £2.45 for a three bed.

Councillors have now voted to delay implementing the funding plans for another month to consider if it could be managed without the rent increase at a full council meeting.

But council leader Coun Shane Moore pointed out that even with the increase the council would still have some of the lowest rents on the markets.

He also noted the government has forced the council to reduce its rents by 1% each year over the past four years.

He said: “We as a council want to invest in new housing stock, we want to do that because it’s right and it’s proper to deliver good quality solid homes for families in this town.

“If we don’t go for this increase, which would still put our rent levels below what it would have been had we not made the cuts, you can immediately take 90 units off the figures that are there.

“That means another 90 homes that we can’t provide for Hartlepool families.

“We have the opportunity to provide for our families and provide for our families now.”

‘People will have a great landlord – us’

Coun Mike Young, deputy council leader, backed the idea and said the plan would be great for the town.

He said: “People need these houses, people are looking for really good quality houses that they can move in to, and these are houses for life.

“These are houses they can move in to and live in for the rest of their life and they will have a great landlord, we will be the landlord.”

Currently Hartlepool Borough Council owns and manages 300 properties after investing in social housing and reopening its Housing Revenue Account (HRA) in 2016.

It was previously stated in a council report if a rent freeze is imposed for the next five years, 90 less properties would be built than the 164 planned with the rent increase.

It was also previously stated the government would provide additional funding for housing benefit and universal credit tenants to meet the rent increase, meaning approximately two thirds of tenants would have all or part of the increase funded for them.

‘It can be done without a rent increase’

Coun Christopher Akers-Belcher raised the motion to defer the proposals, stating more working families are facing poverty.

He said: “Not only are we going to impose a council tax increase on them we are going to impose a rent increase that is over £2 a week.

“Everybody is saying one of the main pillars of the council is to tackle family poverty, then what better way to do it than put our money where our mouth is.

“I believe we can deliver council houses without the rent increase.”

He suggested the announcement of funding for Wynyard Garden Village could be used to provide the houses without increasing the rent

However Coun Moore noted Wynyard Garden Village is a 15-year plan, meaning potential funds may not be available for up to that length of time, and the council would have to wait to deliver the houses.

Coun Paddy Brown also backed the calls to delay the decision to explore other options.

He said: “I don’t think it’s unreasonable to defer this if there is a possibility of another way, and I don’t know that there is and I don’t know that there isn’t.

“I think if there is a possibility we can avoid putting some of the poorest peoples rents up I don’t think it’s unreasonable to defer this decision until next month.”

The item will now be referred back to Finance and Policy Committee to review the rent increase and will come back to a future full council meeting.

The committee had previously approved the investment plans for the council’s HRA earlier this month.

Council housing in Hartlepool – and what is proposed

Council chiefs said they will look to add an additional 18 properties in 2020/21 and 164 by 2024/25.

This will be in part funded by a 2.7% rent increase for existing properties in 2020/21 to make the HRA ‘more sustainable and support additional capital investment in additional housing units’, which would not be possible without the increase.

This will result in an average weekly rent increase of £2.22 for a two bed property and £2.45 for a three bed property.

The government will also provide additional funding for housing benefit and universal credit tenants to meet the rent increase, meaning approximately two thirds of tenants will have all or part of the increase funded for them.

All six other North East council’s with a HRA account are also proposing a 2.7% increase in rent according to officers, in line with CPI inflation and government guidelines.