COUNCIL house rents will go up by an average of 2.2 per cent in April.
The increase, which is in line with Government formulas, was presented to a meeting of the council's tenants and leaseholders panel on Wednesday and will be confirmed at the council tax meeting of the cabinet on February 16.
Under the new rate, average rents will go up by £2.40 a week from £109.26 to £111.66.
The increased income will feed into the housing revenue account and will help overall reserves rise from £9.8 million this year to just under £15.5 million in the financial year starting in April.
At the same time, the council will dip into the reserves to increase the amount it intends to spend on building new council homes in the coming financial year from £6 million to £10 million.
Councillor Alison Butler, the cabinet member for homes and regeneration, did, however, reject a suggestion from her Conservative opposite number, Councillor Dudley Mead, to use money from the reserves to give tenants what he described as a "two-week rent holiday".
Tenants were given a similar deal by the Conservatives last year and Cllr Mead said he believed it was worth repeating.
He said he accepted rents had to go up in line with Government requirements but with the increase in reserves and record levels of rent collection, suggested something could be given back to tenants.
Cllr Mead added: "I spent £1 million from reserves last year to give tenants who paid their rent on time a two-week break from paying. I think the council can afford to do it again."
However, Cllr Butler described the idea as "a bit of a gimmick".