Rotherham council tenants set for seven per cent rent increase

The increase would add an average of £5.54 per week to rent bills, raising the rent to an average of £84.66 per week.

This is the maximum that rents can be increased in 2023/24 in line with the Government’s revised rent cap.

Inflation has resulted in ‘high increases in management and repair costs’, and RMBC say that the increase is “necessary to allow continued investment in housing growth”, and it is “vital that the funding is available to maintain good quality homes and services for the tenants of Rotherham.

A report to cabinet states that no government support is provided to councils to mitigate the impact of the lower rent income.

For Rotherham, the cap means a reduction in expected housing income of at least £3.3m in 2023/24.

RMBC say most council tenants will receive additional housing benefit or Universal Credit that will cover some or all of the increase.

The increase will raise an extra £5.4m to build more council homes, and to fund housing support services.

Cabinet is also expected to agree an increase in district heating charges, paid by 1,260 properties around the borough, with the unit rate increasing from 7.22p to 20.68p.

This will mean the average bill for a district heating customer will be in line with the proposed government energy price cap from April 2023.

To keep the increase down to this level, the council proposes to spend nearly £2.6 million from the housing revenue account.

Councillor Amy Brookes, Rotherham Council’s cabinet member for housing, said: “It is vital that the funding is available to maintain good quality homes and services for the tenants of Rotherham.

“At the moment, our housing budget is under pressure as a result of increasing costs and the impact of the government’s rent cap, which means real terms cuts to the money we have available to spend on housing.

“Building new council homes is a key priority for us, to ensure that more residents are able to access affordable housing which suits their and their family’s needs. We can’t afford to let up on making more affordable homes available.”