Council house rents in North Yorkshire are set for an above-inflation increase to pay for improvements and more affordable homes.
North Yorkshire Council’s executive committee has recommended a rent increase of 4.8 per cent for 2026/27.
The rise is the maximum allowed by the government.
The authority is also looking to increase shared ownership payments by two per cent for the next financial year.
Councillor Simon Myers, executive member for culture, arts and housing, told colleagues at a meeting on Tuesday that there were “long-term benefits” of increasing rents by the maximum amount allowed.
He said these included raising funds for the housing revenue account to pay for improvements to council stock and reduce the number of void properties,
He added:
“There were four years between 2016 and 2020 when government policy dictated a one per cent per annual decrease in council house rents, which cut the core budget of the house revenue account across the UK.”
Cllr Myers said the government had now set out a ten-year policy of the consumer prices index plus one per cent maximum rent increases in the future.
North Yorkshire Council is aiming to build at least 500 new council homes by 2029 at cost of £110m.
He added:
“At the end of the day I think it’s very important that that people remember that the council homes are paid for by council tenants, they’re not paid for out of the general fund and they’re not paid for out of council tax.”
Cllr Myers said the council’s aim was to have a larger stock of good-quality council homes that people could afford to live in.
“It’s very important that the housing revenue account has the capacity to deliver that.
“That’s why I will be moving the recommendations (for the increase).
“It’s the only way in which we return to a decent balance with any alacrity, rather than fiddling about for the next 20 years struggling to make the budget work.”
Councillor Mark Crane, executive member for open to business, supported the increase.
He said:
“Whilst it’s a 4.8 per cent increase, when you compare it to the cost of renting from anybody else, it’s still a very good rent.
“I know in the Selby area, the difference between renting a council house and renting a private – you can double the money to pay for a similar private one to the ones from the council.
“It’s good that the money goes back into improving those properties, making them better for the people living there.”
Before being introduced, the rent rise will need to be approved by the full council at a meeting next month.
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