The authority which slammed 'unscrupulous' private landlords for pricing ordinary Sutton residents out of the housing market has plans to raise rents on council tenants, it has emerged.

On Monday, January 19, Sutton Council passed a motion aiming to deliver affordable housing by using £30m of housing revenue allocation to build 140 new homes. It said it needed to be done as the gap between the rich and poor was widening, home ownership was becoming an impossible dream for many and landlords were charging rents so high that 50 per cent of those on housing benefits were also in work.

On Wednesday, January 28, officers from Sutton Council will propose to raise the rent it charges those living in its own council stock by 2.2 per cent.

The current base rate for inflation is 0.5 per cent. Tim Crowley, leader of the opposition on Sutton Council said: "It does seem somewhat strange following their attack on 'unscrupulous' landlords last Monday.

"And now Sutton Council is looking to hike up the rent it charges its residents living in its own council homes."

By its own estimates Sutton's hike would rake in up to £361,000 falling to £142,000 if the projected sale of 85 homes under the right to buy scheme takes place. The increase forms part of Sutton's "A Fair Council" remit.

The new average rent will be £108.82 per week The council's officers recommendation is in line with the Government guidelines that "aims at harmonising local authority and housing association rents".

What this means in practice is that local authorities can apply an additional increases of up to £2 per week where the rent was below its own "target" levels, meaning the increases are discretionary.

Sutton is also seeking to raise maintenance charges on housing estates by 2.2 per cent.

Charges for the pitches at The Pastures Travellers Site are recommended to be increased by 1.96 per cent.

A council spokesperson said: "Council housing rents are significantly lower than private rents and in Sutton still remain below the London borough average. Rents are increased annually to reflect the rental market and the small increase of 2.2 per cent is in line with recommended government policy, representing an average increase of £2.34 per week. Income from rents is ring-fenced for reinvestment in maintenance and servicing of tenants' properties."

The full breakdown of the new charges is: Bedsit - £78.61 One bed - £94.62 Two bed - £109.64 Three bed - £122.26 Four bed - £134.98 Five bed - £139.60