Sky-high costs in the construction industry have seen councillors justify an inflation-busting 4.3 per cent rise in Powys council rents.

At a meeting of Powys County Council’s Cabinet on 20 January, members discussed a proposal to put up rents next year for council houses, garages and gypsy/traveller pitches by 4.3 per cent.

The 4.3 per cent increase is the maximum increase allowed by the Welsh Government.

Ahead of the proposal going in front of senior councillors, the Tenants Scrutiny Panel (TSP) had said that a 4.3 per cent price hike is in danger of pushing people into poverty and advocated for a lesser rent rise of 2.7 per cent.

Council leader Cllr Jake Berriman believed it was “important” to set the context for rent rises and said that this year’s rent of £111.16 rent was below the UK average of £117.13 and a Wales local authority average of £115.

Cllr Berriman said: “This means Powys provides most affordable social housing in the country.”

Cabinet member for Adult Social Care Cllr Pete Roberts said: “One of the criticisms we might face is that this is an above inflation increase.

“We need to reflect that the bulk of the work in the HRA is building maintenance and development and costs within that sector have increased.”

Cllr Berriman said: “Inflation in the construction sector has been anything up to 20 per cent.”

Chief Officer for Place Matt Perry said: “It is critical that it’s increased.

“I know it’s not a level that the TSP would have liked, but it does mean we can invest in existing and new homes.

“It’s important to emphasise we are developing new homes in Powys and this allows us to respond to increased housing need.”

Cabinet voted to approve the rent hike.