The UK's largest stock holding local authority is planning to freeze council rents until 2013, despite being given the freedom to set them from this year. Birmingham City Council - which manages more than 60,000 homes - said it also plans to extend the freeze to service charges for the second consecutive year. This includes concierge, caretaking and cleaning that are provided to tenants. From April 2012, councils will be able to keep their rental income - instead of it being pooled and distributed by the Government. In return, however, they must pay off the historic debt attached to their properties from when they were first built. This will see them pay off some £19 billion. As a result, councils across the country are announcing rent increases as high as 8% as they bid to tackle their debt burdens. It has prompted campaign group Defend Council Housing to call on the Government to "re-open" talks on the debt settlement for local authorities. Read more on the Birmingham City Council website.
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