South Kesteven District Council proposes 4.8% rise in council house rents

Average two-bedroom home would increase by £4.66 a week as leaders cite rising costs and new government housing standards

Grantham High Street
Author: Oliver CastlePublished 13th Feb 2026

Council house rents in South Kesteven could rise by 4.8 per cent from April under new budget proposals.

Members of South Kesteven District Council’s cabinet have backed plans to increase social housing rents in line with Government guidance, which allows councils to raise rents by the Consumer Prices Index (CPI) plus one per cent each year.

For the next financial year, that would mean the average weekly rent for a two-bedroom property increasing from £97.17 to £101.83 - an extra £4.66 a week. Two-bedroom homes make up the majority of the authority’s housing stock.

The average weekly rent for a three-bedroom property would rise from £107.02 to £112.16, an increase of £5.14 per week.

Garage rents are also set to increase by 2 per cent, while service charges for council-owned properties would go up by 3.8 per cent.

The proposed changes form part of the council’s Housing Revenue Account (HRA) budget for the coming year.

At a cabinet meeting on Tuesday (February 10), councillors said the increases were necessary to help meet rising costs and comply with additional Government requirements placed on local authorities managing social housing.

Councillor Rhys Baker (Independent – Bourne Austerby) said new national standards were creating extra financial pressure without additional funding.

“We have to remember that a number of these enhanced costs are down to new obligations that are laid on us as a result of new standards from the Government,” he said.

Recent changes include the introduction of Awaab’s Law, which requires councils to investigate and fix serious damp, mould and other emergency hazards within strict legal timeframes.

Council leader Coun Ashley Baxter (Independent – Market Deeping and West Deeping) warned that without changes, reserves could be depleted if spending continued at the current rate.

A final decision on the HRA budget proposals will be made at a full council meeting on Thursday, February 26.

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