Leicester Rent Increases

Leicester tenants set for maximum rent increases – but not all will see as big a rise.
Less than a quarter of residents have backed the proposal.

Council tenants are set to face the maximum permitted rent rise from April, with a smaller increase proposed for Gypsy and Traveller plots. Officers at Leicester City Council have proposed a 4.8 per cent rent hike – the highest allowed under national rules – as part of plans to balance the housing budget for this year.

The proposal gained only 18 per cent of residents’ support at a recent consultation, but officers say any lower would result in a budget gap. The increase would apply to council housing rents, garage rents, and hostel rents, and will be scrutinised at a Housing Scrutiny Commission meeting later today (Tuesday, January 13).

However, not all charges are set to climb at the same rate, with the meeting reports outlining a lower four per cent increase for Gypsy and Traveller plot rents.

Officers say the difference reflects the distinct legal and financial status of Gypsy and Traveller plots, which sit outside of the Housing Revenue Account and are not governed by the national social rent framework.

Unlike most council housing rent, income from Gypsy and Traveller plots is not used to subsidise wider housing services, and is instead set in line with inflation.

A council spokesperson said: “The four per cent arrived at represents a rise to cover running, maintenance and management costs of the site, in line with the combined effect of Consumer Price Index (CPI) and wage inflation, while aligning with this legislation.”

Despite the lower increase, officers acknowledge the new rates could still disproportionately impact Gypsy and Traveller families.

In the report, they said: “There is a direct impact on Gypsy and Traveller families who may not be able to afford the proposed increased charges for pitch rents.

“Where required, interpretation and translation will be provided to remove barriers in accessing support.

“The City Council employs a Gypsy and Traveller Manager to manage our sites and provide support to people living on these. Communication about the proposed changes will take place. Gypsy and Travellers will be provided with specific support from this officer if they are facing financial difficulties.”

The proposed rent changes come amid ongoing financial pressures on local authorities, driven by new housing regulations and the loss of income from the Right to Buy scheme, according to the report.

The housing budget will be presented to the full council for final approval in February.