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Jan 2023

Last Updated: 24/01/2023

Politics

Council plans 7% Harrogate social housing rent increase

by Calvin Robinson

| 25 Jan, 2023

North Yorkshire Council looks set to increase rents on social housing in Harrogate by 7% from April.

The authority is set to inherit 3,893 social houses when Harrogate Borough Council is abolished in under three months' time.

Senior councillors agreed to recommend the rent increase at a meeting yesterday.

It will see the average weekly rent in Harrogate increase from £85.22 to £91.18.

Cllr Simon Myers, executive councillor for housing on the council, told councillors that the increase was difficult to propose.

He said:

“I, with a very heavy heart, have to recommend to you all that we increase our rents by the maximum allowed by government this year, which is capped at 7%."

Cllr Myers added that the authority needed the income to balance the books of its housing revenue account.

He added that the council also had an ambition to improve its social housing stock in the future.

Cllr Myers said:

“We have a commitment to our tenants and we understand the pressures on them and all residents of North Yorkshire.

“But we have a commitment that is very long term to provide social, fair and decent housing to our residents as a stockholding authority.”

£2 million deficit

The council will inherit a mixture of houses, flats, hostels and shared ownership properties.

According to a council report, the combination of the Harrogate, Richmondshire and Selby housing stock is set to leave the authority with an in-year deficit of £2 million.

As a result, the council has agreed to increase rents by the maximum allowed by government from April 1.

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The proposal also includes a 2% increase on shared ownership property rents, which is in line with the lease agreements at those homes.

In his report, Gary Fielding, corporate director for strategic resources at the council, pointed out that that a third of the rent paid by social housing tenants is covered by housing benefit.

He said:

“The vast majority of HRA income comes from the rent that is charged to tenants. It should be noted that approximately one third of this income is paid for via housing benefit, rather than directly by tenants.

“In addition, some tenants will be in receipt of Universal Credit, which will include an element designed to cover rental payments, but this cannot be quantified.”

The recommendation to increase social housing rent by 7% will go to the authority’s full council for a final decision.

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Council plans 7% Harrogate social housing rent increase

£2 million deficit

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