Tenants at Powys County Council-owned workshops have warned that massive rent rises could force some of them out of business, with some facing rent increases of 140 per cent.

The massive increases at the workshops in Cemmaes Road were imposed by Powys council, and include a new service charge.

The tenants of the workshops, who run small businesses from the facilities, were shocked by the rise.

The seven tenants at the workshops have met to discuss their concerns, but it has been warned that some are already considering giving notice and leaving the facilities.

Questions have been raised about whether the huge increase is “ethical” considering there are limits on how much of a rent increase that can be imposed on residential properties.

One tenant said: “All the businesses renting these units are one-person operations, the rises seem to amount to much greater hardship to the households they are trying to support.

“It may be legal for them to put the rent up this much, but is it ethical?”

The introduction of a new service charge is also hitting workshop tenants.

The tenant said: “The rents have been put up and then a new service charge has been added – this is 20 per cent of the rent – regardless of the facilities that are provided for in the units, which vary considerably. It is an easy way for the council to gain extra funds."

A spokesperson for Powys County Council said: “Officers from the council’s Commercial Property Team have recently visited tenants at Glantwymyn Village Workshops, near Cemmaes, to discuss lease renewals and rent reviews.

“In some cases, the combination of rent increase and the introduction of a service charge means that some tenants see an increase of 140 per cent with the base rent doubling.

“While this may seem an extraordinary increase at first reading, this figure needs to be considered in its fuller financial context.

"Those tenants who have seen such an increase will still only be paying in the region of £26 per week, including service charges, for 250 square feet of workshop space. The rent proposed is £4.50 per square feet of workshop space.

“Part of the reason that rents need to be increased as much as has been proposed is that reviews have not always been undertaken at the appropriate time. This has meant that tenants have been enjoying artificially low rents.

“To be fair to other businesses and the taxpayer, this position cannot be allowed to continue.”

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