Lancaster City Council agrees 2.7% social housing rent increase

Lancaster city councillors agreed at a full council meeting that from 2020/21, average rent of £73.54 applies for general properties, representing a 2.7 per cent year on year increase.

For sheltered and supported properties, average rent of £68.64 will apply, also representing a 2.7 per cent year on year increase.

The increases follow a four-year rent setting policy by the government which saw social housing rents reduced by one per cent per annum until 2020.

From 2020 local authorities have the freedom to increase rent by a maximum of the consumer price index (in this instance using September 2019's rate of 1.7 per cent) +1% for the next five years.

Coun Caroline Jackson, cabinet member for council housing, said: "Over the last four years and despite the Government’s four-year rent setting policy to reduce social housing rents by one per cent per annum, the council has still managed to deliver a responsive and well managed service with the wellbeing of its tenants being at the heart of everything it has achieved.

"Having come to the end of this period, as a responsible and supportive landlord, we are now in a position through an increase in rent of 2.7 per cent to both build on and improve the way we deliver and manage our housing services - investing in homes and neighbourhoods and taking action to meet the challenges of the climate emergency, whilst remaining committed to supporting tenants who experience hardship."

For 2021/22 onwards, it is assumed that council housing rents will increase by three per cent year on year for a period of four years and 2.4 per cent thereafter, subject to annual review of inflation forecasts, and any future determinations that may be issued by Government from time to time.