Proposals could see rents and utilities increase for council homes in the next financial year.
On Tuesday, Cllr Alasdair Ross, Ipswich’s lead for housing, will ask executive members to approve several proposals relating to the council’s housing stock, including a 2.7 per cent increase in affordable and social rents in line with Government guidance.
In practice, council tenants in social and affordable homes would pay an average of £103.62 per week, or £2.72 extra.
Under the proposals, the average rent for social and affordable homes in Ipswich would be £103.62 per week, or £2.72 extra. Picture: Submitted
Despite the extra cost, approval would mean the smallest increase in council rents in four years and net the council an extra £1.1 million for its Housing Revenue Account (HRA).
Similar proposals would see the same increased rate applied to garage and hard-standing rents, meaning a 30p and 6p weekly increase respectively.
The council report said: “The council relies upon its rental income stream to fund all council house activity, including management, maintenance and improvement of its council homes.
Cllr Alasdair Ross, Ipswich Borough Council’s lead for housing, will present the proposals to executive members on Tuesday. Picture: Ipswich Borough Council.
“A new build programme has been established to ensure the council has a stable and long-term supply of new affordable housing. Successful delivery of this programme mainly relies upon rental income.”
Further changes are being sought to the council’s service and utility charges for sheltered housing, currently capped at a £2 increase.
Cllr Ross’ proposals would see the cap removed and replaced with a phased annual increase aimed at addressing the £433,000 income shortfall and removing the cost subsidy over three years.
This would mean an average of just over £5 extra per tenant, depending on the sheltered scheme.
Addressing concerns over the impact of the changes on struggling residents, the report committed the council to work to support those experiencing financial hardship.
If approved on Tuesday, the proposals would go on to be discussed again at full council for a final go-ahead.