Derby tenants to pay more for new 'essential' housing
Derby’s Housing Crisis and the Plan for a New Future
Derby City Council is preparing to embark on an ambitious initiative aimed at addressing the growing housing crisis in the city. The plan involves building 100 new council homes every year for the next three decades, with the goal of significantly increasing the number of available housing units. This move is seen as a crucial step in tackling the nationwide shortage of affordable homes.
However, this development comes with a cost. Existing tenants of council homes are set to face a proposed rent increase of 4.8 per cent starting from April. The council claims that this rise is necessary to ensure the long-term sustainability of its housing services. The decision has sparked debate among residents, who are concerned about the impact of higher rents on their already tight budgets.
The Decline in Council Housing Stock
Over the years, the number of council-owned homes in Derby has drastically decreased. As of April 2023, the council owned 12,345 homes. This decline can be traced back to policies such as the Right To Buy scheme, which allowed tenants to purchase their homes at a discounted rate. The policy, introduced during Margaret Thatcher’s time as Prime Minister, had a significant impact on the availability of council housing across the UK.
Baggy Shanker, who was once the leader of Derby City Council and is now the MP for Derby South, highlighted the consequences of this policy. He stated that the Right To Buy scheme had cost the council “dearly,” leading to the loss of approximately 13,000 homes. At one point, the city had around 26,000 social housing units, but this number has since dropped below 13,000.
Despite efforts by various administrations to increase the housing stock, the impact of the Right To Buy scheme has been felt deeply. Once these properties are sold, they are typically no longer available for future generations of tenants.
A Long-Term Strategy for Growth
The new plan aims to reverse the trend of declining housing stock by focusing on both construction and strategic acquisitions. Over the course of 30 years, the council hopes to add 3,000 new homes, representing a 24 per cent increase in housing stock. This expansion is expected to provide relief to the thousands of families currently waiting for a council home.
Currently, around 8,000 people are on the waiting list for council housing in Derby. The upcoming cabinet meeting on Wednesday, January 7, will focus on implementing a strategy that provides stable, modern homes for these families. However, the commitment to this plan may result in higher rent fees for existing tenants.
Affordability and Financial Pressures
Despite the proposed rent increase, the council emphasizes that its housing remains among the most affordable in the region. Currently, council rents are at 57 per cent of the average market rent. For the 2025/26 financial year, the average weekly rent is £98.82.
Councillor Shiraz Khan, the cabinet member for housing, acknowledged the challenges faced by residents due to the cost-of-living crisis. He stated that while proposing rent increases is never easy, it is a necessary step to ensure the long-term sustainability of housing services. The revenue generated from these changes will be reinvested into the city's homes, ensuring that all tenants live in safe, warm, and comfortable environments.
Looking Ahead
As the council moves forward with its plans, more details on housing stock numbers will be provided once decisions are made regarding the governance of Derby following Local Government Reorganisation. The focus remains on creating a sustainable housing system that meets the needs of current and future residents.
With the right mix of investment, policy reform, and community engagement, Derby has the potential to rebuild its housing stock and provide a better quality of life for all its residents.
