THOUSANDS of families living in council houses face bumper rent rises worth up to 7.7% from April.
Social rents normally increase by consumer price inflation (in September of the previous year) plus 1.5 percentage points annually.
Social rents will rise from Monday, April 1
However, the government has applied a 7% ceiling on rent cap rises in the next financial year.
This means that from April, councils in England can raise social housing rents by up to 7.7%.
This comprises September’s inflation figure, which was 6.7%, plus an additional one percentage point increase.
The devolved administration in Scotland and Wales also have the power to set their own social rent caps.
In Wales, social housing landlords can increase rent by a maximum of 6.7% from April.
Council house rent rises in Scotland are not capped by the devolved administration.
It means that social rents look set to rise by up to eight per cent, but private rents will continue to be capped at three per cent for the time being.
You’ll live in social housing if your landlord is a council or housing association.
Several major councils have already confirmed how much they’ll increase social rents by from April 1.
The London Borough of Bromley will up rents by the 7.7% maximum.
It’ll mean the average renter in a two-bedroom property will be expected to fork out £723.22 a year more.
Those living in social housing in the London Borough of Hackney will also see their rents rise by 7.7% – representing a £412.45 a year average increase.
Social rents in Stoke-on-Trent will also rise by 7.7% – representing a £321.72 a year increase.
West Northamptonshire Council will also increase social rents by 7.7% – representing a £417.14 a year average increase.
Caerphilly County Borough Council will increase social by 6.7% – representing a £348.31 a year average increase.
Aberdeen City Council will increase social rents by 4.7% – representing a £209.61 a year average increase.
Many social housing tenants receive full housing benefits from the government, which means any increase in rents will be picked up by taxpayers.
However, around 30% of social tenants pay their rents with their own income and will be hit by the increase in full because they’re not eligible for support.
This amounts to over 1,300,000 tenants who are facing the 7.7% hike.
Councils have until the end of March to decide how much they’ll increase social rents.
Your local authority of social housing provider will communicate any changes to your rent rates before April 1.
What help is available?
If you rent from the council or a housing association, you can get help if you’re having problems affording your rent.
If you miss a rent payment, you’ll fall into ‘arrears’ and owe your council or housing associations.
Fail to pay back what you owe and you could be evicted.
If you can’t afford your next rent payment, you should talk to your landlord as soon as possible.
Call them and explain why you’re struggling.
Your landlord may be able to grant a temporary payment holiday or signpost you to other forms of help.
It’s worth asking if you can get a discretionary housing payment.
This provides extra money from your local council to help pay your rent – you don’t need to pay it back.
It’s always worth checking if you’re getting any benefit payments you’re entitled to.
You can use several free calculators to help you get an estimate, such as Gov.uk, Citizen’s Advice, MoneySavingExpert, StepChange and Turn2Us.