Wigan council house rents could go up by 7.7 per cent

The proposal would see rent for homes and garages go up by 7.7 per cent, the Housing Advisory Panel heard.

This comes a year after the town hall bosses bumped up rents by seven per cent in order to "balance the books”.

This new rent rise would allow the council to continue to invest in its housing stock and carry out essential maintenance for the “health and safety of residents”.

The meeting in Wigan Town Hall heard how inflation is an added burden on council purses with a government debt dating back to 2012 costing Wigan an extra £3.5m a year in interest payments.

Coun Fred Walker explained that although these rent increases were not what they want to do, it is necessary in order to keep a better service for residents.

He added that their council homes are still a third of the price to the private rental market.

Council documents read: “The council is acutely aware of the current cost of living and inflationary pressures and the affordability impact this is having for some tenants.

"However, the council also needs to ensure that there are adequate resources to invest in council properties to keep tenants safe and ensure that they are living in properties that meet a decent home standard including energy efficiency to support tenants with the cost of living.”

Increase in costs for parts, energy and labour has led to the council’s spending on maintenance and house building going up. The meeting heard that the housing revenue account (HRA) can only be boosted through rent payment – so rent increases are the only way they can add more to their council housing kitty.

Longer waits for works to be done on properties mean the number of council homes sitting empty has left town hall £1.2m out of pocket by the half-year mark. The latest data showed that there were 450 empty council homes and an average of 67 days where houses are left vacant between tenants moving out and new ones moving in.

Empty homes means less rent money for the council at a time when it is needed the most. This concern was rife among panel members who are all too aware that the waiting list for council homes is now over 12,000.

Approximately 76 per cent of tenants are in receipt of full or partial housing benefit. An increase in rent will have no effect on those tenants as it would be subsidised by the government.

The proposed increase will mean an average increase across all tenancies of £6.99 per week for those not on housing benefits, which will be an average increase of £5.95 per week for a one-bedroom.

Although the tenant representatives were against the proposed increase, the councillors present were reluctantly for it in order to balance the books.

After being recommended by the panel, the rent rises proposal will now go through the cabinet before it goes to full council to be voted on.