Hartlepool Borough Council chiefs defend 7.7% rent rise for housing tenants

The rise will mean 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 government.

The latest meeting of the finance and policy committee heard the rise in rents will “strengthen the resilience” of the HRA, which currently manages 349 homes, to address emerging challenges and allow “additional investment”.

Councillors voted by six votes to five to back the 7.7% increase for 2024-25, which is the maximum allowed by government.

Tony Hanson, executive director of development, neighbourhoods and regulatory services, said: “I accept that it is not necessarily a great thing to be seeing a rent increase of 7.7%.

“But ultimately if you want to develop and take the HRA forward then we’ve got to accept what comes with that is a sustainable budget.”

He stressed 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.

The increase will help fund measures such as improving energy efficiency and tackling damp and mould.

The council previously froze rents in 2020-21 and 2021-22 before increasing them by 5% last year.

The latest increase will go before full council for final approval.