And the government is still considering a massive, regional-wide rent convergence that would further harm tenants in every community on the island. A final decision on this proposal expected in January could have deep implications for millions of renters. If approved in full, the average weekly rent is expected to rise by approximately £6, bringing it to just over £101.
Now, around 75 percent of renters already rely on housing benefit or Universal Credit. After all, many of these folks will not experience the sting of the average proposed rent hike of $360 per month. Their own entitlements are going to increase with the rent increases. And if the government lets councils set their rents to match national “formula rent” levels, renters could face an additional £2 per week rent increase. This change would be a huge hit to their budgets.
The council’s housing business plan encompasses an investment of £1.3 million, aimed at modernizing the council’s homes over the next three decades. This investment is deemed essential for ensuring that council properties meet contemporary standards and provide adequate living conditions for tenants.
Localities are being pinched on both ends in their efforts to contain housing costs. They understand that to accept convergence means a real commitment to invest greatly in public housing, allowing for rent convergence. The decision to adjust rents reflects ongoing discussions about balancing the financial needs of councils and the welfare of tenants.
