Council tenants in rent boost

THOUSANDS of council tenants in Oldham were given the hope of a financial boost after the Government announced plans to halve their rent rises.

Housing Minister Margaret Beckett said extra support would be available to help local authorities cut their planned rent increases to help tenants during the recession.

The average guideline rent increase for 2009/10 — which Government sources said most councils tend to follow — will be halved from 6.2 to 3.1 per cent for local authority tenants, to encourage councils to reduce the amount tenants would have to pay for the coming year.

The original guidelines were set in September at a time of much higher inflation but the new guidelines will override this to support tenants during the current economic uncertainty.

Mrs Beckett announced that the Government would make funding available to support local authorities to make the changes, and revise their rents for 2009/10 accordingly.

It means tenants should see a marked drop in their proposed average rent increase for the coming year from around £4 per week to approximately just under £2, according to the Department for Communities and Local Government (DCLG).

The DCLG insisted local authorities would still have the money to carry out essential repairs and maintenance.

Mrs Beckett said: “We are facing challenging economic times and it is right that this Government offers real help now to council tenants.

“We have listened to what councils and their tenants have said to us about the planned rent increases, and we are determined to help tenants get a fair and affordable deal.

“Ultimately, it is for each council to take up this offer of support, but I would expect them to ensure their tenants receive the full benefits.”

The minister has already indicated that she will look again at the guideline rents for 2010/11 to ensure that council tenants continue to pay rents that are “affordable and fair”.