Thousands of council tenants facing seven per cent rent hike as housing costs spiral

The council said it ‘recognises people’s budgets are under strain’. Photograph: Marco Verch

Thousands of council tenants in Hackney could be facing a seven per cent increase in rent.

The local authority is the latest to consider the hike because of “huge increases in costs”.

The council said: “We need this level of increase to help with the rising costs of delivering housing services.”

Hackney has written to all of its council tenants to ask for their views, with the deadline on 17 February.

It said it needs to raise the extra money for services such as repairs and tackling damp and mould.

The money would also help fund housing surgeries on estates and be invested into council homes.

Service charges are also likely to go up by seven per cent from April.

Since 2020, councils have been allowed to increase rent by the consumer price index plus an extra one per cent. Last year, rents went up by 4.1 per cent.

The prospective increase could cause a headache for families already juggling their budgets because of the high cost of living.

The council told its tenants: “We recognise that many household budgets are under strain due to the cost-of-living crisis.”

It advises people facing debt or rent arrears to get in touch as soon as possible.

“Do not be tempted to approach a loan shark or take a payday loan,” it added.

Instead, it urged residents to call the council on 020 8356 3100.

“The earlier you speak to us, the more we can help. Our staff have experience in helping residents manage their rent accounts. They are also trained to provide debt and welfare benefit advice.”

Anyone wanting more help and advice can call the council’s Money Hub on 020 8356 3111.

It has also published details of support available to residents during the cost-of-living crisis.