Thousands of council tenants in Northumberland to face rent increase from April

Northumberland County Council’s cabinet has approved an increase of 7.7% from the start of the next financial year.

The increase represents the 6.7% rise in the consumer price index CPI as well as an additional one per cent agreed as part of the Government’s rent standard.

The change is expected to affect 28.4% of tenants living in the 8,286 homes the council has within its housing stock.

Of the remaining tenants, 31% receive housing benefit and 40.6% are on Universal Credit, meaning the increases will be covered by the Government in benefits increases.

The increase would see an average tenant in a two-bedroom house pay an extra £6.40 a week.

A report presented to the cabinet said the increase would be used to enable the council to “continue to deliver existing services, maintain the decent homes standards and meet new demands and challenges”.

Cllr Colin Horncastle, cabinet member for housing, said: “It is always a political hot potato this, but if you look at neighbouring authorities with different political persuasions and at social housing providers, they’re all doing the same thing. This shows that there is nothing else we can do if we’re to achieve what we want to achieve.”

Cllr Horncastle added that much of the housing stock owned by the council needed to be brought up to modern standards in terms of energy efficiency.

Council leader Glen Sanderson added: “We have to take any rent increase that is reasonable in order to ensure that our stock is maintained and that we can invest in affordable housing. The flip side is that we absolutely ensure that there is a system in place that helps the people who need it most, and that is in place and it is a very generous scheme.”

The council’s hardship fund supports council tenants who may not be eligible to receive financial assistance through existing benefits due to their income, but may still be struggling with rent payments due to increases and the cost of living crisis. Set up in 2023/24, the fund will contain £350,000 for 2024/25 and is administered internally by the housing income team, with each request ‘considered on merit’.