Shropshire Council propose to increase council housing rent
Shropshire Council housing tenants could see an increase in their rent by an average of £3.55 a week from April if the plan is approved by councillors later this month.
The proposed increase will result in an average rise of 4.88 per cent, and is in accordance with the Government formula rent calculation, which is the recommended basis for setting rents for all councils and registered social landlords.
Shropshire Council’s Cabinet is also recommended to introduce affordable rents on certain properties in the future. The affordable rents are based on 80 per cent of the local market rent, and would apply to new homes built by the council for rent and appropriate re-let properties.
The proposals were discussed with tenant representative groups last month and if they are agreed by Cabinet and full Council, all tenants will receive a letter to explain the rent increase.
Councillor Malcolm Price, Cabinet member responsible for housing, said:
“We, of course, do not want tenants to face difficulties in paying their rent.
“However, we have to look at the levels rents are set at each year to ensure we have enough money to balance the books and maintain services.
“The rate proposed should still ensure that these rents are the lowest in the county, follows national guidance, and means we would not have a gap in funding which would ultimately impact on the quality of our housing services.
“At the same time, we are looking to the bigger picture by securing grant money to build affordable homes for sale and rent, and refining the detail on affordable rents for new homes built by the council and, where appropriate, properties which are re-let, to help those who are unable to buy or let a property on the open market.”
If approved by Cabinet, the increase in rent for 2013/14 will then require approval of full Council later this month.
