Council Tenants Facing 4.8% rent increase to keep Hartlepool Borough Councils 'failing' Housing Revenue Account afloat..
- Feb 3
- 3 min read
Hartlepool Borough Council Tenants Facing almost 5% Rent Increase as a failure to increase rents means The Housing Revenue Account ‘would fall into deficit’ report claims.
3rd Feb 2026
Tenants renting a property from Hartlepool Borough Council are expected to learn that their rents will be increased by almost 5% in April following proposals which are set to go before councillors at a Finance Meeting next week.
Hartlepool Borough Council is said to be proposing a 4.8 per cent rent increase for council tenants, after senior officers warned that without the rise the councils Housing Revenue Account (HRA) would become “unsustainable” and slide into deficit.
The increase – calculated as 3.8 per cent CPI inflation plus the maximum additional 1 per cent permitted under government policy – is being recommended to councillors as the only way to balance the council’s housing budget for 2026/27. The HRA Business Plan makes clear that this level of rise has already been built into the councils financial model and, on that basis alone, the account just breaks even. Without it, the report states bluntly, the HRA would move into the red.
A 'Perfect Storm' of Rising Costs Report Claims
The council’s justification for the rise centres on what officials claim is a perfect storm of rising costs and long-standing structural pressures within the HRA. Officers say that in recent years the account has been under “extreme pressure” from a combination of factors, including construction cost inflation running ahead of both CPI and RPI, the ongoing impact of Right to Buy sales, higher repair bills, rent arrears linked to welfare changes, void properties taking far too long to re-let, and the cost of meeting tougher standards on damp, mould and energy efficiency.
These pressures, compounded by rising borrowing costs and the need to invest more in major repairs and adaptations for disabled tenants, are all said to be squeezing the council’s ability to make voluntary contributions to its Major Repairs Reserve. In simple terms, the HRA is facing higher day-to-day costs at the same time as needing to spend more on bringing homes up to modern standards.
Finance chiefs are also said to be acutely conscious of the legal requirement under Section 76 of the Local Government and Housing Act 1989 that the HRA reserve must never be allowed to become overdrawn. At present, the HRA reserve stands at just £500,000 and is forecast to remain at that level even if the 4.8 per cent rise is approved.
Officers warn that this is a thin financial cushion leaves the account vulnerable to future shocks, but without the rent increase the position would be even more precarious & potentially leave HBC's housing ambitions collapsing under the weight of its own debts..
Increase will fund more Efficient Repairs
The council argues that the increase is not simply about balancing the books, but also about funding improvements that tenants have long called for. The report says that additional rental income will help pay for a more efficient repairs service, upgrades to energy efficiency, and measures to tackle damp and mould in council properties, in line with new legal duties introduced through the Social Housing (Regulation) Act and “Awaab’s Law”....
There is, however, some mitigation for many tenants. Its claimed around two-thirds of Hartlepool’s council renters receive Housing Benefit or help with housing costs through Universal Credit, and the report confirms that central government will increase those payments to cover all or part of the additional rent for those households. As a result, a majority of tenants will not feel the full impact of the rise in their own pockets....
Even so, the council’s own impact assessment acknowledges that the increase will have a negative financial effect on some tenants, particularly those just above benefit thresholds. Housing officers say they will work proactively with anyone struggling to pay, including helping them update benefit claims, apply for Discretionary Housing Payments, and access debt and budgeting advice.
