4.3 per cent council house rent rise will push people into poverty tenants group warns

Senior councillors are expected to agree a raft of proposals all based on a 4.3 per cent hike in fees and rents that would come into force on April 6, at a meeting of Powys County Council’s Liberal Democrat/Labour Cabinet on Tuesday, January 20

This would see the average council house rent to go up from £111.16 to £115.94.

The cost of occupying a gypsy/traveller plot will also go up from £125.39 to £130.78 a week.

Garage rents are also set to go up from £15.05 to £15.70 a week. This sees the annual cost go up from £191.32 this year to £199.95 for 2026/2027.

The 4.3 per cent increase is the maximum increase allowed by the Welsh Government.

The council point out that they don’t always increase fees to the maximum allowed, such as in 2023/2024.

In 2023/2024 the maximum increase allowed was 6.5 per cent and Powys only raised it by 5.36 per cent due to “exceptional” cost of living circumstances.

Documents lodged with the report show that that the Powys Tenants Scrutiny Panel (TSP) met in November to discuss the proposals.

The panel had four options in front of them which ranged from no rent rise to increases of 2.2, 3.8 and 4.3 per cent.

Minutes from the meeting said: “The panel debated the trade-offs, noting that while a higher increase 4.3 per cent would maintain current service levels, it could be unaffordable for many tenants.

“Multiple tenant representatives strongly opposed the 4.3 per cent increase, expressing concerns it would push more people into poverty, especially working tenants who do not receive benefits.

“Some noted that the maximum should be seen as a limit, not a target, and questioned what tangible benefits tenants would receive from such an increase.

“There was consensus that 4.3 per cent was unaffordable for many, with references to rising costs in other areas like Council Tax and utilities compounding the impact.

“Panel members suggested that services could be maintained with a lower increase and that everyone, including the council, should – cut their cloth – in difficult times.”

The minutes show that  a majority on the panel voted to reject the 4.3 per cent increase and voted for a compromise increase of 2.7 per cent – which is £3 a week.

Comments from the panel are included cabinet report which explained why they can’t support the 4.3 per cent increase and recommend a 2.7 per cent increase.

The TSP said: “We have experienced four years of above inflation rent and service charge increases and have now reached the point where families with two incomes are now finding it increasingly difficult to find the money.

“Food inflation for example has risen 37 per cent in the last four years alone.

“We know times are tough, but they are tough for tenants both on benefits and now impacting those in work, many of whom have not had pay increases to cover these costs.”

But council chefs will push for the maximum increase.

The report said: “A rent increase of 4.3 per cent, which is in line with the CPI (Consumer Prices Index) inflation rate for September 2025, is necessary to make sure that the Housing Service is sustainable and able to provide homes and services for both current and future tenants.

“Should rents not increase to keep pace with inflation, the Housing Service would need to consider service reductions.”