Birmingham City Council under fire after increasing housing rent

Birmingham City Council has come under fire after increasing average rents across its social housing stock by £7 a week. An opposition councillor said the announcement will “stick in the core” of residents who feel the standard of council-owned housing is not up to scratch.

The decision to raise rent, and to introduce a 5-7 per cent service charge rise, was made today (15 February) by the council’s cabinet. It comes after the government capped social housing rent increases at 7 per cent nationally, meaning Birmingham City Council has chosen the highest possible price hike available.

Council documents claim the average weekly rent for council tenants following the 7 per cent rise will be £100.18, roughly a £7 increase. They add that a lack of investment in council housing has left it “well below” the current decency standards, and that the rent increase will help to “continue the delivery of effective housing services to social tenants”.

Decision will ‘not sit well’ with residents

Meanwhile, deputy leader of the Conservative Group Cllr Ewan Mackey (Cons, Sutton Roughley) believes the decision will not sit well with thousands of tenants across Birmingham’s 60,000 council-owned homes.

He said today: “I think what will stick in the core of quite a few residents will be that when you consider the condition of some of our council stock at the moment and a 7% increase in rent, you have to look at what are you getting in return.

“We had a debate at full council last week and there was unanimity that some of the housing stock is less than acceptable, to choose a very polite form of words. I think somebody described the council as ‘the biggest slum landlord in Birmingham’.”

Cllr Mackey’s comments were backed up by the council’s own report into the rent increase, which reads: “Tenants do not feel their homes have been invested in, which leads to increased complaints about the service as well as the resources expended on managing repeat repairs within our properties to maintain them at a minimum standard which still does not meet decency levels.”

Cllr Mackey suggested reintroducing the concierge system as one way to give residents something in return for the increase. Cabinet member for housing and homelessness Cllr Sharon Thompson (Lab, North Edgbaston) said this was something that is being explored but would come at a further cost.

She added: “There is a housing crisis across the country. Everybody is feeling the difference because of decisions made nationally by the government.

“We have invested more money in the last year in terms of bringing things back up to decency. There is a plan moving forward to increase investment to the sum of £80 million on the decency of our properties.”

Statement from Cllr Ian Ward

Leader of the council Cllr Ian Ward (Lab, Shard End) admitted 7 per cent is a higher rise than in recent years, but said private rents had increased by 17.6 per cent between October 2021 and 2022.

He said: “Part of this is to lever the investment that is needed in the housing stock. Much of our housing stock is over 70 years old and has in excess of 60,000 properties – it is quite a challenge to invest in housing stock at that age and keep it up to the standard required.”

Cllr Ward added all social tenants will be sent a leaflet in the coming weeks detailing avenues of financial support and ways to deal with the rent increase. A 7 per cent rise will also apply to temporary accommodation hostel rent, primarily used by the homeless.

The decision comes on the heels of Solihull Council’s move to raise rents across its housing stock by 5 per cent. It opted for the slightly lower price hike, citing “fairness” and “cost of living pressures” as reasons for its choice.