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Ipswich Borough Council is proposing to keep a rise in council house rents to inflation from April this year, according to a report being presented to a council meeting next week, rejecting proposals to push rents up by 7.2% as part of Government guidelines to achieve rent convergence by 2015/16.

Ipswich Spy understands this decision was proposed, in part, because the council recognises that many tenants are facing very difficult financial times and a large increase would add to the hardship being caused by Government cuts.

David Ellesmere told Ipswich Spy:

“Everyone is feeling the pinch at the moment and we felt that the Government guideline rent increase of 7.2% would have placed too much of a burden on our tenants. However the Government still has a stated desire for “rent convergence” with Housing Associations. So there is a risk that having a lower-than-inflation rent rise would lead to a big Government-imposed “catch-up” increase in future years.

“This real-terms freeze in rents will still allow us to keep the “Ipswich Standard” of housing maintenance and to move forward on our plans to build the first new council houses in Ipswich for over 20 years”

Normally the housing rents would be considered as part of the Medium Term Financial plan, the council’s budget process, but because of the statutory need to inform residents before 5th March 2012 the council is holding a special council meeting next Wednesday. This also means, because of ongoing changes to council housing finance, it has been impossible to consult with tenants representatives. The council will be putting a 30 year business plan for the Housing Revenue Account to the February council meeting.

The lack of consultation raised the ire of Ipswich Liberal Democrat Chairman Cllr Ken Bates, who said it was not true that the council was unable to consult with tenants representatives:

“It is always possible to contact tenant representatives directly, though since the administration has abolished the Housing Management Board, it’s been made more difficult for tenants to have a say. Labour, it would appear, are removing tenant consultation piece by piece.”

Cllr Bates also expressed shock at the size of the rise, which, at 5.6%, was the rate of inflation last September.

“Labour are not only potentially putting essential community groups out of business, they are hitting Ipswich Borough Homes tenants with an over inflated increase that will take more money out of some of the vulnerable members of our communitys’ pocket.”

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