Council house rent rates in Newcastle look set to be hiked up for the first time in five years.
Civic centre leaders are expected to sign off on a 2.7% increase in rent fees for Your Homes Newcastle tenants next week.
The city council says that the move, which comes after four consecutive years of rents being cut by 1%, is needed to generate an extra £1.9m.
A report to the local authority’s cabinet states that it will be necessary to up rent charges from April “to continue to fund services to tenants”, though the council said that previous rent reductions since 2016 had cost it £24m in income.
The 2.7% increase, which is the maximum the council can impose, will amount to an average of £2 per week for around 25,000 tenants.
The council says that people in receipt of benefits should “not experience any financial impact as costs will continue to be met by housing benefit/universal credit”, adding that only tenants who fund all or part of their rent from their own income will be affected.
Service charges are also due to go up by 2.7% - as are heating charges for the 2,168 households covered by district heating systems, garage rents, and charges for the Ostara emergency response service for vulnerable tenants in sheltered or specialist housing.
While council home rent rates had been cut by 1% each year since 2016, the previous five years had seen substantial annual increases of up to 8.2%.
Coun Linda Hobson, cabinet member for housing at Newcastle City Council said: “We are committed to providing good quality, affordable homes and housing services in our city.
“We have reduced the rents we charge by 1% annually for each of the last four years but it is essential that we have sufficient funds to invest in council homes to make sure that they are safe, energy efficient and offer the support that our older and vulnerable tenants need.
“The increase this year will enable us to continue to invest in our existing housing stock and in new homes.
“Information will be sent out to tenants explaining how anyone worried that they will suffer financial hardship as a result of this increase can access advice and support.”
