Sky-high costs in the construction industry have seen Liberal Democrat councillors justify an inflation-busting 4.3 per cent rise in Powys council rents.

At a meeting of Powys County Council’s Liberal Democrat and Labour Cabinet on Tuesday, January 20, members discussed a proposal to increase rents next year for council houses, garages and gypsy/traveller pitches by 4.3 per cent.

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

Housing portfolio holder and deputy council leader, Cllr Matthew Dorrance (Labour – Brecon West), declared an interest and left the meeting.

This meant council leader Cllr Jake Berriman (Liberal Democrat – Llandrindod North) presented the report in his absence.

Ahead of the proposal going before senior councillors, the Tenants Scrutiny Panel (TSP) warned that a 4.3 per cent increase risked pushing people into poverty and advocated a lower rise of 2.7 per cent.

Cllr Berriman said it was “important” to set the context for rent rises, adding that this year’s average rent of £111.16 was below the UK average of £117.13 and the Wales local authority average of £115.

Cllr Berriman said: “This means Powys provides the most affordable social housing in the country.”

Cabinet member for adult social care, Cllr Pete Roberts (Liberal Democrat – Llandrindod North), said: “One of the criticisms we might face is that this is an above-inflation increase.

“We need to reflect that the bulk of the work in the HRA is building maintenance and development, and costs within that sector have increased.

“Are we comfortable that this level of increase will allow us to do the improvement work that is going to become more pressing to ensure our residents have the best homes we can deliver?”

Cllr Berriman said: “The HRA is a closed account and distinct from the council’s wider budget, and has to wash its own face financially.

“We do get grants to build and maintain homes and ensure they are as energy efficient as they can be, but they are harder to come by.

“Inflation in the construction sector has been anything up to 20 per cent.”

Chief officer for place, Matt Perry, said: “It is critical that it’s increased.

“I know it’s not a level that the TSP would have liked, but it does mean we can invest in existing and new homes.

“It’s important to emphasise we are developing new homes in Powys, and this allows us to respond to increased housing need.”

Cabinet voted to approve the rent hike.

From April 6, rents will be as follows:

The average council house rent will rise from £111.16 to £115.94.

The cost of occupying a gypsy/traveller pitch will increase from £125.39 to £130.78 per week.

Garage rents are also set to rise from £15.05 to £15.70 per week, taking the annual cost from £191.32 to £199.95 for 2026/27.