Rents for social and affordable council houses in Ipswich are likely to increase by seven per cent.
Ipswich Borough Council’s executive voted for the increases this week, which would see average social and affordable rents increase from £87 to an estimated £93 per week.
Average private property rents in Ipswich were £261.50 a week at the end of November 2022.
The increases will be subject to a vote at full council before they can be implemented from April.
Neil MacDonald, portfolio holder for housing, said: “In the last year, the housing revenue account has been hit by significant cost increases outside our control.
“Although it’s good to see a decent pay rise for staff, funding this required a rent increase of 6.8 per cent on its own.
“Costs for building work and materials have increased by 15.5 per cent in the last year and borrowing costs are massively increasing.
“The average council rent is much cheaper than the average market rent.
“We will ensure the housing revenue account finances are on a sustainable footing, which will enable us to continue to provide a strong service for tenants.
“Managing arrears and helping tenants through the cost-of-living crisis will be a focus of the coming year.”
Mr MacDonald also explained the council’s housing team is doing 25 per cent more repairs than pre-Covid.
Affordable rents are typically higher than social rents, at up to 80 per cent of the local market rent.
Under the proposals, garage rents would be unchanged and sheltered home service charges would be capped at £2 per week.
In response to a question by councillor Ian Fisher about whether smaller increases had been modelled, an officer explained they had – with the seven per cent option coming out as the best one to keep the account running effectively in the long term.
Councillor Carole Jones said: “Any council would wish their rent increases to be as low as possible, but limited government support has contributed to our need to make these increases.
“Not only do our council tenants have lower levels of rents than private tenants but they also have our network of housing officers who support them.
“And they have security of tenure, which is massively important for any family or individual.”
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