Exeter council house rents to rise

Seven per cent increase on the way

Council housing rents in Exeter will increase by the largest amount in years from April, despite concerns that more tenants will struggle to pay.

The city council’s executive has agreed to the increase of seven per cent, also applicable to garage rents and most service charges, which will mean an average weekly increase of around £6 per property.

It is the maximum increase a local authority can impose on tenants, after the government capped the level for the forthcoming financial year.

Exeter says the move is necessary after tenants benefited from an annual one per cent cut in rent between 2016 and 2020 as part of government policy, leading to almost £8 million of lost housing revenue and baseline rents being “lower than previously anticipated.”

The executive unanimously backed the rise at a meeting on Tuesday [10 January], although Councillor Ruth Williams (Labour, Mincinglake & Whipton) asked what extra help would be made available to those who will struggle to pay their rent.

“Even though this is less than inflation, it’s still considerably more than pay rises and and benefit increases that our tenants will receive, so I think we have to anticipate that many will struggle to pay this increase and may fall into arrears,” she said.

In response, deputy chief executive Binju Ardoon said the council has funds available to support people who are in “real hardship” and that its housing service is “extremely good” at signposting other forms of help and support.

Explaining the seven per cent hike, a report said the costs of council housing services and labour are “already increasing above inflation and a reduced rent increase would lead to a reduction of service delivery.”

While acknowledging the potential impact of the increase, it added how a lower increase “would have an impact on projects which would assist tenants financially in other areas,” like retrofitting to help reduce energy bills.

Deputy council leader Laura Wright added: “Nobody wants to see anything rising at the moment, but we’re in the sad reality that everything is rising.”

She said portfolio holder Barbara Denning had made “every effort to go and talk to tenants as much as she possibly can” and claimed they had been “understanding” about Exeter having to put up rents.

Councillor Duncan Wood (Labour, Pinhoe) reiterated the rise was less than inflation, adding that rental income is kept seperate and “cannot be used to support the rest of the council. It is in its own pool.”

The rise will mean weekly rent for a typical two-bedroom flat owned by the council from April will rise to £86.34, which the report reveals is cheaper than other providers in the city.

It states the average weekly rents for a two-bedroom property in Exeter during 2022/23 are £99.30 per week for a comparable housing association property and £182.19 per week in the private rented sector.

Rents and service charges will rise by seven per cent, with a 12 per cent increase in contents’ insurance to “reflect anticipated increases in premiums.”