CABINET members approved a provisional 4.8 per cent rent increase for council tenants over the next year at a meeting on Wednesday - and council leader Sir Steve Houghton believes it’s a ‘difficult but necessary’ decision.
Members discussed the Housing Revenue Account (HRA) for the upcoming year - a budget which is an essential part of the council’s long-term housing strategy.
It outlines key investments in council homes and proposed rent levels.
The report states that the council will invest £29m to ensure decency across its stock and a further £600,000 will be spent on an enhanced ‘customer offer’.
Up to £42m will be spent on delivering EPC C stock rating to all stock by 2030, while an additional £43m will be spent to deliver more than 200 new homes into the HRA.
In order for this funding to be created, council tenants are set to see a 4.8 per cent increase in their rents.
From a tenant’s perspective, an increase of 4.8 per cent would represent an average increase of £4.48 a week (52 weeks) - increasing the average weekly rent from £93.35 to £97.83.
Sir Steve added: “There’s no doubt the funding of social housing in local authority housing is a broken model nationally.
“The government recognise that.
“It needs a significant look at it and a lot of that work is going on at the minute so hopefully something positive will come out of that.
“Whatever the rent increase, it is still substantially lower than you would find in the private sector or other providers as well.
“People still want to be in council houses.
“Every member knows that through their surgeries and the waiting list that we still have.
“It’s secure, a good landlord and we manage those tenancies effectively.
“So whatever the rise, it is to ensure we continue to provide that high quality service that we have in Barnsley through Berneslai Homes.
“It’s difficult but necessary in the circumstances.”
The proposals were approved and will now be discussed at the next full council meeting.
Coun Robert Frost said that there will be some councillors who are against the proposals at the next meeting, but without the increase the new investment would not be viable.
He said: “It (the increase) means we can continue to provide decency.
“I know there will be some councillors when this comes to full council that will want the investment but not the increase.
“You can’t have it both ways.
“We can’t set a negative budget.”
Coun James Higginbottom added: “It’s never an easy decision when you’re looking at increasing the amount that residents have to pay.
“However I feel that the report sets that in the context of ensuring that we are continuing to deliver decent, warm sustainable homes for our residents to enjoy.
“In that sense, whilst it is by no means an easy decision, it is important and necessary to make sure we can meet our needs going forward.”
