Birmingham City Council set to hike social rents

Birmingham City Council is set to increase rent for thousands of its tenants across the city.

The Labour-run authority is proposing to hike social and affordable rents by 4.8 per cent in the next financial year.

This is the maximum amount the government currently allows councils across the country to increase their social rents.

The proposal comes as the council takes action to improve the condition of its homes and make sure they meet the decent homes standard.

That is the minimum standard set by the government and states all social housing should be in a reasonable state of repair and have reasonably modern facilities.

The council’s administration has previously faced criticism from opposition councillors on the state of the council’s homes, with Conservative group leader Robert Alden saying just over a year ago that families were “trapped in damp, mould-ridden homes”.

In a new report, the Labour-run council said it had increased its compliance against the decent homes standard from 30 per cent to 42 per cent, which it says is driven from the £622m investment since 2024.

Amid this backdrop, the council has said its proposed increase in social rents would “counter some of the impacts of high inflation and borrowing costs” and help it achieve its compliance obligations.

Further justifying its plans, Birmingham Council said that each 1 per cent reduction in the increase from the government’s 4.8 per cent cap “would mean a permanent loss in income of £2 million average” per year.

It continued that this is the equivalent to 400 less bathroom renovations each year, 256 less kitchens per year and 167 less roof replacements each year.

“The average weekly rent to be implemented because of this revision will be £117.05,” it said.

Government-appointed commissioners, sent in to oversee the council’s financial recovery, added the increase would “support the provision of good-quality homes and a level of service that enables the council to meet its obligations to residents”.

The report went on to say the government had consulted on rent convergence – allowing social rents to catch up with the originally intended rent levels before they fell behind due to freezes and caps over the past 10 years.

“These rent levels will be further increased by any allowable rent convergence levels, as set by government for 2026/27,” it said.

Regarding the decent homes figures, the council has previously said that more issues were being encountered as stock condition surveys were carried out and that there had previously been underinvestment in homes in the city.

“The council have made commitments to ensuring our homes achieve decent homes standards as soon as feasibly possible,” the new report said.

“The sustained progress in this area shows a track record of delivery and a continued commitment to improving the existing stock.

“However, the council are only in year two of an eight year program.

“[This] means sustained investment in the long-term is required to ensure council homes are safe, warm and sustainable for a long term.”

The council’s proposals are set to be discussed by cabinet members at a meeting next Tuesday, January 20.