Friday, 3 February 2012

Council Approves Rent Rise Of Almost 10 Per Cent

Rotherham Council has approved a recommendation for an inflation-busting rent rise of 9.45 per cent - one of the biggest hikes anywhere in the country. Dave Richmond, director of housing and neighbourhoods at Rotherham Council, said the borough’s traditionally low rents - which before last year’s rise of 8.69 per cent rise averaged £60 a week - forced it to apply the maximum increase allowed in order to comply with CLG criteria aimed at bringing council rents into line with those charged by housing associations. ‘For us to get to convergence there’s no way we cannot apply that [formula],’ he said. But local tenants’ federation Rotherfed said many residents would be unable to afford a second year of steep rent rises. ‘We have had low rents and that’s coming home to roost,’ said Steve Raffle, development manager at Rotherfed. ‘But the convergence doesn’t have to be so quick; we are very worried about the impact on tenants.’ Read more on Inside Housing.

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