Council house rent in Cannock Chase set to rise by 2.7 per cent
Council housing tenants in Cannock Chase are set to see their rent go up by almost 3 per cent in April – and a long-running contents insurance scheme offered by the authority is facing the axe.
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The proposed rent increase of 2.7 per cent, due to come in from April, is lower than last year’s 7.7 per cent rise – and the funds will be used to maintain and increase housing stock in the district.
The rent setting report was considered by Cannock Chase Council’s cabinet at its meeting on Thursday (January 30). The report said: “The council is seeking approval for a CPI (Consumer Price Index) 1.7 per cent plus 1 per cent rent increase in 2025-26.
“This increase in rent will allow continued investment in the existing HRA (Housing Revenue Account) stock, services and new build properties to increase the stock held by the HRA. The increase will also help to ensure the maintenance of a minimum level of working balances and to deliver the refreshed capital programme.
“It should be noted that the council’s average rent level is lower than most social landlords operating in the Cannock area and throughout Staffordshire. If we do not increase the rent in 2025/26, in line with Rent Setting Policy, the HRA will not have sufficient funds to invest in its stock holdings.
“A five-week consultation process on the pending rent increases has been carried out with tenants before the annual report to Cabinet. The consultation started on December 6 2024 and ended on January 17 2025.”
Cabinet members were also asked to approve plans to stop directly offering tenants content insurance and terminate an existing contract at the end of March. A weekly payment scheme, with premiums charged alongside rent, has been running since at least 1998, but the number of tenants taking up the offer has dwindled over the years.
A report to the cabinet said: “The current contract was tendered in 2021 but in recent years we have seen uptake of the scheme decrease as more and more tenants either choose not to be insured or to procure their home contents insurance product elsewhere. This is potentially taking advantage of comparison websites online.
“In 2001 there was over 15 per cent tenants taking advantage of the scheme, reducing to 11 per cent in 2017... the average age of the tenants on the scheme is 64.9 years old and a review of the list of tenants indicated that four had died, four had purchased the council property and one had moved away.
“Recognising the declining number of tenants taking up the scheme, an inability to demonstrate true value for money for tenants, the hugely increased administrative burden and the risks associated with council staff ‘selling’ insurance, it is proposed to terminate the scheme from the beginning of April. In the wider insurance marketplace, tenants can opt for an infinite number of insurance options, cover levels, excess levels and specific inclusions and exclusions.
“Tenants will be communicated (with) following any decision and will be advised to find an alternative insurance provider. But officers will not be able to signpost to a particular provider or give any opinion.”
