WINCHESTER’S 5,000 council tenants will see an above-inflation rent rise this year.

The cabinet has agreed a report that will see the average rent increase by £1.56 from £103.67 a week to £105.23.

Chiefs are investing £500,000 in a new hardship fund to help tenants struggling financially or mentally. Some 22 per cent of tenants are now on universal credit.

The rent rise follows the national policy of a one per cent increase above the rate of inflation.

Richard Botham, strategic director, told the housing and business committee that the increase helped the council deliver good services to its tenants.

Mr Botham said that mental health issues were increasing in the lockdown with problems of hoarding, anti-social behaviour and neighbour disputes. A mental health specialist has been taken on on a two-year contract in partnership with Southern Health NHS Trust.

The ‘Everyone In’ programme is continuing to house the homeless. Ten are staying at a hostel on City Road and six are in a hotel.

Some £10 million has been set aside for land purchase for future council house building.

Monica Gill, of the council-tenants liaison group, TACT, said: “We welcome the setting aside of £10m to purchase new land. We rather thought it would be the Bar End Depot when that becomes available, could be set aside for housing. I’m sure Mr Palmer (head of new homes delivery) and the team would rub their hands together if they could get a site like that.”

The council has been looking at commercial uses for the site on Bar End Road.

Cllr Caroline Horrill, leader of the Conservative group, criticised the ending of an outreach worker who worked with the homeless. Mr Botham said the council would work with other agencies to provide the same service.

Cllr Horrill asked whether the council would be buying the City Road hostel it had been renting to house the homeless.

Some £10 million has been set aside for land purchase for future council house building.

Final approval will be made at full council on February 24.