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Council to postpone rent increase in response to coronavirus crisis
A council will delay increasing rents for three months in response to the COVID-19 pandemic.
City of York Council said it was too late to reverse the rent rise in its billing system but that tenants will be refunded the difference through their accounts.
The council, run by a Liberal Democrat and Green Party coalition, said the move “will make a real difference to tenants on low incomes across York”.
It retains a housing stock of around 7,600 homes.
The increase delay will not apply to tenants paying through Universal Credit or housing benefit as their rent is covered in full.
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Social landlords in England are able to increase rents for the first time in five years from this month, up to a maximum of 2.7%.
A survey carried out by auditor RSM found that 94% of organisations in the sector are planning to apply the maximum rent hike.
Research by housing consultancy DTP did not identify any providers planning to reverse the increase despite concerns it could lead to criticism during the COVID-19 emergency.
Huge numbers of people across the country are expected to face difficulties paying rent during the pandemic as the economic impact causes them to lose jobs or see their pay packets reduced.
Courts have paused all possession hearings for at least three months, effectively suspending evictions.
Nigel Ayre, executive member for finance and performance at York Council, said: “We fully recognise that this is an incredibly difficult time for a lot of households and that is why deferring these rent increases will make a real difference to tenants on low incomes across York.
“Just like our commercial premises, it’s right that once again City of York Council sets an example to all landlords across York and does what it can to support residents.”
Councils and housing associations were required by law to put rents down by a flat 1% a year between 2016 and 2020 as the government sought to reduce the housing benefit bill.
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