Proposed 2.7% Rent Increase for Council Tenants Set to Be Discussed By Hartlepool Borough Council....
- teessidetoday
- Feb 3
- 4 min read
Tenants in homes owned by Hartlepool Borough Council set to be hit in the pocket once more, as a proposed 2.7% Rent Increase is discussed & could be approved in just weeks.....
3rd Feb 2025
Hartlepool Borough Council’s Finance and Policy Committee has outlined proposals to increase council rents by 2.7%, potentially impacting some 356 council-owned properties across the town, with the plans potentially set to come into effect in just weeks....
The decision follows a previous rent freeze and a lower-than-allowed rent increase back in April 2023, which Hartlepool Borough Council acknowledges has contributed to increasing financial pressures on its Housing Revenue Account (HRA).
Hartlepool Borough Council reopened its Housing Revenue Account back in 2010, after selling off nearly all of its housing stock & land off to a now national private housing provider. With the council now steadily increasing its housing stock numbers since the reopening of its Housing Revenue Account nearly 15 years ago, its claimed since the last financial update was brought to the council back in January 2024, Hartlepool Borough Council has now expanded its housing stock by acquiring a further eight family-sized properties (three- and four-bedroom homes) through the Afghan Relocation Programme whilst simultaneously losing two homes through the Governments Right to Buy Scheme.
The Right to Buy scheme reportedly remains a major financial concern, with each sale said to be causing an annual rental income loss for the local council of around £2,300 per home, alongside an average outstanding debt of £38,000 left for the council to shoulder. .
161 Day turnaround for a vacant property represents some of the worst re let rates in the country.
The councils also said to be facing further financial strain due to rising repair costs, which now stand at an estimated £1,750 per dwelling per year. Void properties, which remain empty between tenants, continue to be an issue despite some progress being made, where currently, it's said that 4.2% of the councils properties are vacant, slightly higher than the national average for social housing (4%). However, the most alarming figure is the 161-day average turnaround time for re-letting vacant properties—far above the national standard of 2-4 weeks. In response to this, its claimed the council is to improve this process by working closely with the building and construction team to deliver more efficient repair work in 2025/26.
Rent Collection and Arrears Management
Despite what the councils claims are 'financial challenges', Hartlepool Borough Council boasts a rent collection rate of 102.8% (as of the second quarter 2024/25), which is significantly higher than the UK social housing average of 97.2%. This figure is said to be being driven by what the council claims is 'effective rent arrears recovery', with no tenants being evicted due to rent arrears as of 2024. With Hartlepool Borough Council saying that it works with tenants to set up affordable payment plans and provide support to prevent financial hardship.
Proposed 2.7% Rent Increase: What It Means for Tenants
Under current government rent policy, Local councils are allowed to increase rents annually by 1% plus the Consumer Price Index (CPI) rate. For 2025/26, this equates to a 2.7% increase (CPI of 1.7% + 1%).
The council states that this is necessary to ensure the councils Housing Revenue Account remains sustainable, warning that without this increase, the budget would fall into deficit.
The financial impact on tenants however will vary. With Hartlepool Borough Council claiming Approximately two-thirds of its council tenants receive either Housing Benefit or Universal Credit, meaning their increased rent costs will be covered entirely or partially by government support.
The council argues that the proposed rent rise aligns with similar increases by other social housing providers in Hartlepool and is essential to fund key housing services, including:
A more efficient void property repair process to reduce waiting times for new tenants.
Energy efficiency improvements in council homes.
Addressing issues such as damp and mould, which have been a concern in some properties.
The proposed 2.7% rent increase is expected to be formally approved at the end of February, when councillors will meet for the full council meeting, where, if agreed, the council anticipates generating a small surplus on its Housing Revenue Account ensuring the sustainability of housing services, however the public backlash at the proposed increase is likely to be significant, owing to Hartlepool Borough Council said to be in the process of also hiking up local council tax bills by a near 5% in April adding to many local householders financial struggles.
Hartlepool Borough Councils current Housing Revenue Reserves at 1st April 2024 was said to be £500,000 and, according to council reports is forecast to rise to £528,000 as of the 1st April 2025 and increase again to £536,000 by 31st March 2026 (if a 2.7% rent increase is approved) with council finance chiefs insisting that the increase is required to provide financial resilience to withstand future potential and unexpected financial pressures which may arise, with HBC even acknowledging themselves that whilst rent increases are never welcomed by tenants, without the increase, the council will struggle to maintain its housing stock effectively....
What do you think ?
Do you agree that rents for Council Tenants should be increased ?
YES
NO
