Southwark Council rents expected to increase from April 2020

Josh Salisbury (20 January, 2020) Housing

The rent hike would net the council an extra £5million according to a report to be considered tomorrow

8116The council's offices on Tooley Street

Council rents will increase by 2.7 per cent under proposals set to be approved tomorrow.

The move would see the rent hike – the first in four years – for the council’s directly managed and tenant managed housing stock.

Under legislation passed in 2016, local authorities were required to reduce rents by one per cent per year. This year is the first year rent increases are allowed.

The move has caused a £62.5m in the council’s annual coffers, according to a report to be considered by Cabinet tomorrow afternoon.

“Under this substantial pressure we have worked hard to protect frontline housing services for our tenants and residents whilst also ensuring long-term investment in making our housing warm, dry and safe continues at pace,” said Cllrs Kieron Williams and Cllr Victoria Mills.

“After the proposed rise, Southwark’s rents will remain 8% – 9% lower than the government’s assumed target and the 8th lowest of the 29 London Boroughs with retained housing stock.”

Services charges would also increase from £8.97 per week to £9.25 per week. Garage charges will also see an increase under the move, from £20.70 to £21.30 per week.

The rent hike will secure the council an estimated £4.9m, while homeowner service charges are expected to net £1million.

If approved, the changes will take effect from April 6.

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