Proposed rent increase dropped to 1.7% for Hartlepool council houses

Hartlepool Borough Council Finance and Policy Committee heard the rent increase would allow the council to add 11 new properties to its housing stock for 2020/21.

The 1.7% increase was selected out of three options by councillors, with the others being a 2.7% increase or a rent freeze.

If councillors had voted to increase rent by 2.7% a total of 18 new properties would have been provided for the coming year and if they had voted for a rent freeze no new properties would have been provided this year.

The committee had previously approved a 2.7% increase last month, before it was referred back to them from full council following calls to see if the funds could be found in other ways.

Council leader Coun Shane Moore, who had backed the 2.7% plans, said: “There is a high level of family poverty going on for those who are unfortunate to live in private accommodation that is overpriced.

“It is driving down the disposable income for these families.

“Often it’s in properties that aren’t particularity fit for purpose, but there aren’t sufficient properties for them to be able to move and get out of those houses, and what we’re trying to do here is address that.

“For me I think it’s important that we try and build our HRA as much as possible so that we can provide good quality homes for as many families as possible and potentially ease their current financial burden.”

The impact of rent increase levels on housing supply

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

Coun Jim Lindridge, who voted in favour of a 1.7% rent increase, said: “Nobody wants rent increases, but unfortunately if we’re going to have sustainable growth for housing we’ve got to make that a consideration.

“We have to accept the way times are now with inflation, we’ve got to accept things are going to go up and not come down.”

If rent increases by 1.7% each year for five years 130 more homes will be offered by the council, compared to 164 if rent increased 2.7% each year.

If there was a rent freeze for five years just 74 homes would be provided, and councillors will vote each year on whether to increase rent.

Coun Christopher Akers-Belcher had called for a rent freeze for this year, following on from the recent approved council tax increase.

He said: “It shouldn’t be we’ve set everything and now we’re going to stink out our tenants with a rent increase as well, that’s what sits uncomfortable with me.”

How many people are waiting for a council house

Council officers noted as of last week there were 2,169 residents on the council housing register across four bands.

In band one, for people with the highest need for housing, there was 232 on the register, with band two, those who also have a high need for housing, having 313 people on the register.

Officers also noted even with the increase the council would have some of the lowest rents on the market, after the government previously forced the council to reduce its rents by 1% each year over the past four years.

It was also previously stated the government would provide additional funding to meet the rent increase for approximately two thirds of tenants.

Four councillors voted in favour of the 1.7% increase, while three voted in favour of the 2.7% increase and two voted in favour of a rent freeze.

The rent increase and housing plans will now go before the next full meeting of Hartlepool Borough Council for approval.