Rents set to rise for Dudley Council tenants - here's by how much
Dudley Council’s tenants look certain to face the maximum rent increase from April while most service charges will be cut.
At a meeting of the authority’s Housing and Assets Scrutiny Committee on January 15, councillors were given a chance to debate planned charges for the next financial year before a final decision is made.
A full council meeting will vote on the housing budget on January 29 when a rent increase of 4.8 percent will be on the agenda.
Cllr Ian Bevan, Dudley cabinet member for housing and homelessness, said: “The budget reflects a balance between maintaining compliance, managing demand and continuing to modernise services.
“The less collected, the less the council has to invest in our housing services and our housing stock – the income collected from our tenants is ring-fenced for investment back into the services they receive.”
The 4.8 percent hike means an average rent increase of £4.76 per week which will generate an extra £3.9m for housing services.
Cllr Bevan told the meeting 86 percent of council tenants will see an increase of between £4 and £5.99 per week and 2.3 percent will be asked to find £6 extra per week.
The amount councils increase rents is dictated by the government based on inflation rates and, despite the nearly five percent increase, Dudley’s rates will still be less than average for the West Midlands or England.
The rise will be offset for some by a reduction in service charges for most tenants who pay the extra fee.
Cllr Bevan said: “Service charges are calculated using actual expenditure and estimates based on known costs.
“Seventy two percent of 6,855 tenants who pay service charges will see a reduction in their weekly service charge, of the 27 percent who will see an increase, the majority, will see an increase of less than £2 per week.”
A report for the committee on the impact of the rent rise said: “Around 73 percent of DMBC tenants receive some financial support through Housing Benefit or Universal Credit.
“The impact on remaining tenants would be mitigated insofar as possible through signposting to advice and support in relation to income maximisation, including discretionary housing payments where appropriate to do so.”
Cllr Bevan added: “Anything but a full rent increase has significant long-term implications.”
