Council house rents will increase by 1.5% in 2021/22, Caerphilly County Borough Council’s cabinet has agreed.
This will see the average weekly rent for council house tenants go up by £1.36 – equalling £92.02 a year.
A council report says this is the lowest increase “for a number of years” – with the average across the last seven being 3.33%.
Between 2020/21 and 2024/25, councils in Wales can only increase their rents by the CPI inflation rate plus 1%. CPI (consumer price index) is measured based on the average value of a shopping basket.
As the inflation rate in September was 0.5%, 1.5% was the maximum increase the council was allowed.
Council rents go towards the council’s housing revenue account (HRA), which manages the council’s housing stock.
The council had budgeted for a 2.5% increase in its business plan and the reduction to 1.5% will reduce the housing revenue account’s income by £500,000.
The report says: “Inflationary increases on providing all aspects of the housing service are experienced annually, however as the HRA cannot legitimately set a deficit budget, the loss of additional income will result in reduced resources being available to effectively manage and maintain the stock, or result in increased levels of borrowing.”
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Rent on council-owned garages will also increase by 1.5% for the next financial year. Unlike council homes, these rents have not been increased for three years.
Currently the council charges £8.11 a week, but 75% of garage tenants are not council tenants.
For council tenants the new weekly garage charge will be £8.23 and for non-council tenants it will be £9.88.
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