Why many Hartlepool Borough Council tenants may not pay all of their new 7.7% rent increase

The rise means properties under Hartlepool Borough Council’s housing revenue account (HRA) will see average rent increases from between £5.83 per week for one bedroom properties and £8.83 for four bedroom homes in 2024-25.

Yet around two thirds of tenants are in receipt of benefits and will therefore have all or part of their increase funded by the Government.

The 7.7% rise, the maximum allowed, had previously been backed by the council’s finance and policy committee before going before the latest meeting of full council, where it won final approval by 18 votes to 17.

Conservative councillor Mike Young, the leader of the council, said it was “important” the rise took place while also noting rents have gone up “across the board in the private sector”.

He added: “There is inflation. The effects of that will be felt for some time, it is therefore important for us to agree to the rent increase of 7.7% for 2024-25.”

Labour councillors voted against the move, with deputy group leader councillor Jonathan Brash stating the increase would be “making people poorer”.

Council officers previously said the rise in rents will “strengthen the resilience” of the HRA, which currently manages 349 homes, to address emerging challenges and allow “additional investment”.

They added the HRA is a separate ring fenced account to the council’s general budget and must not go into deficit, with all costs having to be met from rental income.