New Wolverhampton tenants facing rent rise of £15 per week
New tenants in Wolverhampton could see their rents increase by up to £15 per week despite a Government ruling that rents across the country must be reduced.
In July ministers ordered that all social landlords, including councils and housing associations, reduce rent by one per cent per year each year for the next four years.
But Wolverhampton council has based its long term strategy for building maintenance on rents going up. Bosses have launched a consultation featuring a series of options aimed at making up for the shortfall.
They include charging 'affordable rent' instead of 'social rent', meaning rents will go up by £15 per week for new tenants. Another proposal is to increase service charges by £2 per week, meaning garage rents and hostel charges would go up by one per cent, along with concierge charges.
This can be done by increasing the service charge by £2 per week in April next year; or £1 per week in 2016 and a further £1 per week in 2018; or 50p per week for the each of the next four years.
Other charges, including fencing, sheltered schemes and digital TV fees would not change under the plans.
District heating charges will not go up in April but the council is moving away from a standard charge to charging each tenant for what they use.
Councillor Peter Bilson, deputy leader and cabinet member for city assets, said: "The whole country is facing a huge demand for housing and Wolverhampton is no different.
"The revenue we get from rents is fundamental to helping meet this demand and maintaining our current housing stock.
"I would urge as many tenants as possible to get involved in the consultation process so together we can find the best way forward."
Other options on the table are: reviewing the planned maintenance of housing in a bid to reduce costs, and reducing the management allowances paid to Wolverhampton Homes.
All cash collected in rents and service charges, including housing benefit payments, is kept by the council and can only be spent on council housing in Wolverhampton.
Public meetings for tenants will take place in Committee Rooms 1 and 2, on the Civic Centre third floor, at 2.30pm and 6.30pm on December 2.
People attending the 6.30pm meeting should use civic centre's rear entrance.
Views can also be sent electronically via www.wolverhamptonhomes.org.uk/rent-review
The deadline for comments is December 11. The council will decide which options to introduce on January 13.
