TENANTS in homes owned and managed by Burnley and Padiham Community Housing will have to pay below inflation rent increases.

The rise has been pegged at 1.7 per cent, an average of less than 50p a week for each of the 5,000 houses which the company took over from Burnley Council.

Director of housing Paul Buckley, said that over the next few days letters were being sent to every customer who lives in one of the company's homes, telling them that the increase for the next financial year was only 1.7 per cent.

He said: "This is another prime example of the company's commitment to delivering the promises made at the time of transfer and a remarkably low figure when considered against the level of council tax increases that are planned for the same period.

"Furthermore, the level of increase authorised by the Housing Corporation, the government body which regulates the housing association sector, was 2.2 per cent"

He added: "The company is delighted to be able to make this brilliant offer to its customers and hopes that they appreciate the good news."

Mr Buckley promises that notwithstanding the very low increase in rents, the company would still be pressing on as fast as possible with the improvements to customers' homes, which were also promised at the time of transfer.

Burnley councillors will meet tomorrow to consider their budget proposals, with possible increases for discussion ranging between four to eight per cent.

Lancashire County Council have approved a 7.7 per cent rise.

Tenants of former council properties in Blackburn with Darwen face their lowest rent increase in more than 10 years.

New landlord Twin Valley Homes has kept its pre-transfer pledge that any increase would be restricted to inflation plus one per cent.

And that means a rent increase of just 2.7 per cent, which will come into effect from April 1 this year.