COUNCIL house rents in Powys are going up by around £4 a week or £16 a month from April.

Powys council’s cabinet agreed to increases of more than 2.4% when it met at County Hall.

Councillor James Evans, the cabinet member for housing, told the Independent/Conservative cabinet rent levels have slipped behind a Welsh Government target rent in recent years.

The Conservative member for Gwernyfed said: "It is imperative we close the gap between the target rent and the actual rent.

“The cabinet could consider a higher or lower rent increase however the rent would start to challenge affordability and lower rents would put the long term investment plans at risk.”

Despite the council increasing rents by more than the guideline rent figure each year for the last two years the council’s Housing Revenue Accounts (HRA) rents have fallen outside of the target rent band for each of the last three years, this year’s rents are £1.30 below the target rent band.

The Welsh Government allows for a maximum increase of 2.4% plus up to an extra £2 a week for local authorities below the target rent band.

In Powys that will mean increases of between £4.25 and £4.32 a week.

From April 2019 Powys will increase rents by 2.4% plus £1.30 which will effect 3,518 homes. For 174 homes it will increase by more than 2.4% plus £1.30 but less than £2 and for 1,608 homes the increase will be 2.4% plus £2 a week.

Tenants on Gypsy sites will see their rent rise to £101.04 a week from £97.40.

The Tenant Scrutiny Panel will be told of the increases and tenants will need to be given 28 days notice of the changes.

Rents for related properties such as garages have also been increased.

The council uses the HRA, which is generated by rents and other housing related charges, to fund all its landlord related services including salaries.

Cllr Evans said: "It also underpins our ability to deliver a balanced and sustainable HRA business plan through financing the borrowing we draw down to invest in our stock and develop new homes."

According to his report to the cabinet the rent increases are vital to the 30 year housing department business plan.

It says : “If rents are not increased annually our 30-year business plan will not be affordable, we will not be able to meet our investment commitments, nor will we be able to continue to provide high quality services to tenants and leaseholders."

According to the report if the rents are not increased, a Major Repairs Allowance worth £3.7 million in capital funding each year will be at risk.

The Welsh Government sets target rent bands to make sure local authorities and housing associations set "reasonable" rents and Powys council rents have slipped below the target line and, according to the council, need to be rebalanced.