Exeter could see council housing rent rise

It would be the biggest rise for years

Council housing rents in Exeter will increase by seven per cent from April, the biggest rise for years, if councillors give their approval next week.

The recommendation, which will also be applied to garage rents and most service charges, will mean an average weekly increase of around £6 per property.

The city council says the move is necessary due to tenants benefiting 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.”

It is the maximum increase in rent the council can impose on tenants, after the government capped the level in November at seven per cent for the forthcoming financial year.

Explaining the recommendation, a report to the council’s executive team which will consider the rise says: “Significantly the costs of services and labour are already increasing above inflation and a reduced rent increase would lead to a reduction of service delivery.”

But in a month where the government’s energy price guarantee is due to go up and council tax is also likely to rise, the increase will add further strain to household finances from April.

While acknowledging the potential impact of the increase, adding that officers “have and continue to work to assist households in financial difficulty where possible,” the report explained 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.

It continued: “Many tenants will have their rents met by housing benefit (HB) or universal credit (UC), so a lower rent increase will not necessarily benefit them. 30 per cent of the council’s tenants are on full HB, 10 per cent on partial HB and 20 per cent in receipt of UC.”

The rise will mean weekly rent for a typical two-bedroom flat owned by the council from April will be £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.

The council’s executive will be asked to approve the increases on Tuesday [10 January].

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