Lambeth rent increases less than originally feared (From Your Local Guardian)

Lambeth rent increases less than originally feared

11:41am Tuesday 2nd February 2010 in

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Council tenants have seen their proposed rent hikes cut after a u-turn by council housing bosses.

Tenants had faced an inflation-busting 5 per cent increase in rents and 8 per cent increase in service charges.

But next Monday Lambeth Council's cabinet are set to vote through 3.1 per cent and 5.7 per cent increases respectively.

The rent increase is in line with Government recommendations.

Councillor Lib Peck, Lambeth cabinet member for housing, said: "We have listened to what our tenants have said - that is why we are working to secure the smallest possible increase of £2.60 per week."

Tenants - who were hit with a whopping 14 per cent rise last year, the largest rent increase in the country - had asked for a rent freeze.

Tenants council chair Ros Munday said: "Obviously we are pleased our lobbying seems to have paid off."

She added: "We are still concerned about the increase in service charges. We don't get a service now so why should we pay more for it?"

The drop in rents and service charges, equal to a £500,000 drop in revenue, has heightened concerns over the ability of housing manager Lambeth Living to deliver its targets next financial year.

Last week Lambeth Living's chairman Keith Hill MP warned it needed more revenue for its management budget or it faced cutting up to 70 mostly frontline staff.

Coun Peck said the council remained firmly committed to working closely with Lambeth Living in the next few weeks to agree a workable housing management fee for providing housing services for tenants.

She said the current budget ensured an extra investment of £3.3m in to repairs, and a freeze in increases in hot water and heating charges.

Ms Munday said the key to Lambeth Living reducing its management fee, which is only slightly less than the budget for repairs, was to cut the amount being spent on consultants.