Rent Increase for Council Tenants

Will 6-9% increase make the difference?

With an inflation-busting rent increase due to hit Hounslow residents this April, the London Borough of Hounslow has joined forces with other Housing Chiefs across the capital, to fight against the Government's imposed rent increase.

In a joint letter to Margaret Beckett, from seven other London Authorities, Hounslow’s lead member for Housing and Community Safety, Cllr Phil Andrews, has criticising the government, for creating an increased burden on those who are already struggling to make ends meet.

The letter states: "if these rent increases do go ahead they will have a negative impact on our most vulnerable residents, many of whom are already struggling to make ends meet during the recession.

"Taking into account this very tough economic climate, we are urging the government to take a more reasoned approach and to keep any rent rise to an absolute minimum.

"We are calling on the government to look again at the formula it uses to calculate rent to ensure a fairer system can be put in place next year."

Eight local authorities - Brent, Camden, Harrow, Hillingdon, Hounslow, Kingston, Southwark and Westminster- have now come together to fight against this rise. The capital's housing leaders are urging the government to take immediate action and reconsider its decision, and look again at the formula it uses to calculate rent to ensure a fairer system can be put in place next year.

The Council has a legal duty to set a “balanced” account. This means that the Council must not knowingly set an account which is planned to fall into deficit. The main items of income into the HRA are: Rent and Interest. The main items of expenditure in the HRA are: Management, Maintenance, Major repairs and Capital financing costs.

Cllr Andrews said:

“Tenants, who tend to be on fixed incomes, such as pensioners and those just above the benefit threshold, will have to find the extra money just as Britain slides further into recession.

“Taking into account this very tough economic climate, we are urging the government to take a more reasoned approach and to keep any rent rise to an absolute minimum.”

February 19, 2009