TENANTS in social housing looking to upgrade to a new home as part of the council’s £40m investment could have to fork out more than double in rental costs as part of a new business plan.

Slough Borough Council has reviewed its policy on the rents to be charged on newly built homes as part of its Housing Revenue Account (HRA) business plan, which was approved by cabinet on Monday.

As part of the plan, the council will invest £100m in its current council housing stock, which is currently 7,100 homes, and invest an additional £40m in building new properties for social rent over the next seven years.

But the amount tenants pay for these properties is set to sky rocket, as the council says it has to generate its own funding for affordable rental homes as there is no national funding available and the government’s ‘Pay to Stay’ policy means that prices will rise anyway.

Councillor Rob Anderson, speaking at the meeting on Monday, said: “For someone who has a two-bed house and has been on the waiting list for 10 years for a three-bed home, their rent will rise from £474.80 a month to £1,061.19.

“Nobody on a low income is going to be able to afford that.”

The Current rent for a one-bedroom property is £394.90 a per calender month, but that will rise to £656.50, with a rise from £474.80 to £840.32 for a two-bed home, from £553.80 to £1,061.19 for a three-bed property and from £607.45 to £1,280 for a four bedsroom house.

The prices for the new council homes have been set at either 80 per cent of the market rent levels, or the maximum Local Housing Allowance rates, whichever is the lower figure. This is set to be reviewed, along with the overall business plan, in March next year.

Cllr James Swindlehurst said: “Historically this council has made a commitment to maintaining council housing stock, but that is now only described as an ambition.

“This cabinet needs to think very seriously about its consultation and review of these properties.

“Social tenants depend on low-rent housing and we have decided to do the Conservative government’s dirty work for them.”

Resident groups are due to be consulted over the plan, and it is also set to be discussed at the Neighbourhoods and Community Services Scrutiny Panel meeting on November 3.

Mike England, interim strategic director of regeneration, housing and resources, said: “There is an unprecedented uncertainty for the HRA.

“The HRA is in a reasonable shape in the short term, but we are suggesting that we consult residents over this plan.

“These proposals do not diminish the amount of social houses that we have, it changes the rent that we are charging.”