Southwark council tenants hit with 2.7 per cent rent hike

A council tenant rent hike of 2.7 per cent has been approved by Southwark.

The council’s final Housing Revenue Account (HRA) budget was agreed by cabinet on Tuesday and includes a rent increase for the first time in four years.

The Welfare Reform and Work Act 2016 required local authority landlords to reduce rent by one per cent and cap it.

This is the first year since that councils have been allowed to increase rent, and Southwark has voted to raise it by the maximum of the Consumer Price Index (CPI) inflation rate plus one per cent.

According to the council it has lost more than £60m because of the reduction and cap.

Introducing the HRA budget report, Councillor Kieron Williams, cabinet member for housing management and modernisation, said: “The Government introduced an arbitrary reduction each year in rent of one per cent.

“Obviously there are ups and downs to that; it was good for our tenants to have slightly less rent to pay, but it’s made it very difficult to maintain our stock to the standard that we of course want to maintain it to.

“Now we are able to go back to the rate that is inflation plus one per cent.”

He said the council had “broad support” for the increase.

He added: “This allows us to put more money into the things that matter to residents; that’s district heating, repair services, and it also allows us to put more money into our great estates programme.”

Service charges will increase from £8.97 to £9.25 per week, while standard garage charges will go from £20.70 to £21.30 per week.

Council tenants, resident leaseholders and freeholders who get a £5 discount will pay £16.30, an increase of 60p.

Pictured is the Aylesbury estate in Walworth