Sunderland council house tenants face 7% rent increase as chiefs try to balance the books

Sunderland City Council became a registered provider of social housing in November 2019, with the local authority now owning and managing 93 homes following a “steady increase” in properties over the period.

The council’s cabinet at their latest meeting agreed to increase rents by 7% from April, which officers say will mean an average gross rise across the stock of £7.60 per week for tenants.

The council said this is in line with the Government’s threshold cap of 7% on social housing rent increases for 2023/24, which was announced in November following a consultation with providers on what the limit should be.

More than half of tenants will not see any rent increase however, as this will be covered by their housing benefits, senior councillors heard.

Cllr Kevin Johnston, cabinet member for Dynamic City, said the rent increase is “extremely difficult”, but a decision they need to take.

He said: “We must ensure we protect our council tenants as we continue to build our housing service as well, and this relies on the income from rents.

“Setting rents below 7% will put at risk the council’s ability to provide its services and meet the needs of tenants with regards to repairs and maintenance, but also future home improvement programmes.

“This would create a position where the council would be at risk of not meeting the regulatory requirements set by the Regulator of Social Housing.”

Of the 93 tenants the council currently has, just 22 will need to pay the full 7% rent increase, as they do not receive any housing benefit.

Around 60%, 56 in total, are in receipt of full benefits and will not see any rent increase, as this is covered by their housing benefit.

The remaining 15 tenants will see a smaller rent increase as they only receive partial housing benefit.

The biggest increase for a full rent payer will be £36.40 per month, with the smallest rise being £21.49.

The average increase across the 22 full-paying homes is £30.18 per month.

Councillors at the meeting added it is the local authority’s priority to ensure they have a “quality housing stock”.

Councillor Louise Farthing, cabinet member for children, education and skills, said: “I think it’s very unpalatable to be asked to increase social housing rents by 7%.

“However if we don’t do this we’ll end up with a poorer service, our tenants require the best service that we can deliver.”

The Government’s Rent Policy and Rent Standard had previously outlined registered providers could increase rents by CPI plus 1% per annum, and it was the Government’s intention to leave this policy in place until 2025.

However due to the cost of living crisis this was reviewed, as if the CPI + 1% policy was applied, it would have meant a rent increase for social housing tenants of more than 11% for 2023/34.