Rugby council home tenants see seven per cent hike in rents from April - the biggest increase allowed by the government

Anyone living in a property owned by Rugby Borough Council will face a 7% rent rise from April, the biggest increase allowed by the government.

And with energy prices also on the increase, tenants could be faced with a double whammy as they will need to stump up extra cash for higher service charges.

At this week’s full council meeting of Rugby Borough Council, the draft housing revenue budget for the coming financial year was approved which incorporated the 7% price hike for those living in the 3,433 council-owned homes.

Speaking at the meeting, Cllr Emma Crane (Con, Leam Valley), the portfolio holder for communities, homes, digital and communications, explained that it was normal for rates to go up by the consumer price index [CPI] + 1% which would have meant an 11.1% increase but that a cap of 7% had been announced as part of the Chancellor’s Autumn Statement.

Cllr Neil Sandison (Lib Dem, Eastlands) said that the rise in service charge ‘added insult to injury’, calculating that some of the council’s more vulnerable tenants would have to find an extra £40 per week.

He said: “My big concern is if they get caught in a benefits trap and if they get into arrears then they could possibly have a threat to their tenancy or legal action against them.

“I am looking for assurance from the portfolio holder that she will move heaven and earth to make sure that those people get support from an independent living coordinator, CAB or Age UK to get them the help they are going to need to find that extra £40 a week.”

There was also concern from the Labour group. Cllr Michael Moran (Lab, Admirals and Cawston) said: “We are not looking at the impact of the increase on our tenants. Yes we are a landlord but we also have a social responsibility to those people.”

Cllr Crane responded: “I think it is important to distinguish between actual service charges and utility costs for individual properties.

“CAB and Age UK will be doing a drop-in session to speak to residents about concerns and to give them options about what help is available and we are working with Act on Energy. We are also looking to speak to the energy company about what help they can offer. The help is there and the council is ready to step up and assist people.”

And the council leader, Cllr Seb Lowe (Con, Coton and Boughton) said: “ In voting for this increase we should all note that this council will remain by far the cheapest landlord in the borough and that the increase proposed is well below the current levels of inflation.

“This is a robust, pragmatic and practical solution to the needs of our tenants, not just today but for the future.”

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