how your rent is spent hackney council

Housing Services is proposing to increase council rents in line with the national guidance which will enable us to continue to invest in Council housing in the borough.

The Council’s Cabinet will consider proposals to increase average rents from £103.10 to £107.33 – an increase of 4.1% – in line with central Government rules on social rents that ties housing rents to inflation. Inflation is the rate at which prices are rising - for example if the cost of a £1 chocolate bar rises by 5p, then chocolate inflation is 5%. It also applies to services such as getting a bike fixed, as well as products, so when inflation rises, prices rise in many areas.

For people on universal credit or housing benefit this increase will be covered by universal credit or housing benefit payments, or for those whose rent is partially covered by universal credit, the payment will therefore continue to be partially covered. 

From 2016 until 2019, the Government required councils to reduce rents by 1 per cent each year, meaning that we now have £15 million per year less to keep homes and estates warm, safe, clean and in a good state of repair.

What the increase means

• The cost of renting a Council home would still be one of the lowest in London
• It provides the Council with vital funds to support vulnerable residents
• Help improve services for Council tenants
• Help invest in Council housing for future generations

How is your rent money is spent

100% Council rents go towards services for tenants, investment in Council housing for future generations; it also provides the Council with vital funds to support vulnerable residents to maintain their tenancies and feel safe in their homes. There is no other pot of money or central government funding the Council can use. 

For each £1 of rent:

• 35p: Supervision & Management - the management and delivery of services to residents
• 32p: Investment in properties – the cost of improvements to your homes
• 19p: Repairs and maintenance – the work done to repair your homes and ensure your estates are safe 
• 12p: Special services – the cost of grounds maintenance, estate cleaning, security services, community halls, hostels and communal heating, electricity etc.
• 2p: Rent, Rates, Taxes and Other Charges - the cost of running properties and buildings in which the housing service is based

Why the increase is happening

• Costs have increased – for things such as materials, goods such as housing vehicles and services including electricity prices and wages for labour 
• There is no other pot of money or central government funding, less rental income means the Council can not maintain its service level 

The vast majority of Tenants’ service charges will remain frozen. For more information on Council rents go online to hackney.gov.uk/your-rent

Have your say on these proposals by getting in touch before 10 January 2022, on email: housing.rents@hackney.gov.uk; or by writing to: Rent Section, Hackney Service Centre, 1 Hillman Street, London E8 1DY. Title your correspondence ‘rent increase proposal’.