Lower Rent Increase For Poole's Council Tenants

Poole Councillors voted last night to accept the Government's offer to reduce the amount of rent increases from April 2009.

This is good news for tenants across Poole who had been faced with a large rent increase at the same time as having to cope with the problems of the economy.

The Housing Minister has proposed that the average rent increase for Poole tenants should fall from an average increase of 6.05% to an average increase of 3% and that Local Authorities would be compensated for the income loss. For Poole, this means that there will be no negative impact on resources because of the reduction.

Tenants had previously been notified that their average rent increase would be 6.05% based on a formula that includes the inflation rate (based on the Retail Prices Index (RPI) figure) of 5% as at September 2008.

Inflation has fallen dramatically since September 2008 and the Government, following pressure by Local Authorities, tenants' groups and other pressure groups, has decided to reduce the level of the rent increase.

Cllr Elaine Atkinson, Cabinet Portfolio Holder for Health, Housing and Well-being, Borough of Poole, said: "This is great news for council tenants who will now have the increase in rent they expected halved. The lower increase will really help ease financial burden during a difficult time where a lot of tenants are struggling to make ends meet. Following last night's meeting the council will be writing to Government again about the unfairness of how rent formulas are calculated for local authorities and housing associations."

The final decision about whether to reduce the level of the rent increase rested with full Council. Following last night's decision, officers at the Borough of Poole and Poole Housing Partnership, the company who manage and maintain council properties on behalf of the council, will work together to carry out the necessary processes to recalculate the revised rent levels and any benefit entitlements. Letters to notify tenants of the changes will be sent out in the next two or three weeks.