Hundreds of families could be forced out of their homes following council plans to increase rents.

Councillors are set to approve the seven per cent increase – the equivalent of about £7 extra per week for a two-bedroom property – at a full council meeting on Wednesday (February 29).

But tenants’ groups fear the effects of the rise, combined with high levels of inflation and wage freezes, could see many residents made homeless.

Ron Hollis, chair of the Lambeth tenants’ council, told a recent housing scrutiny meeting that anything more than a five per cent rise would force tenants ‘over the edge’.

Speaking to the Streatham Guardian, he said: “Many people will be faced with the choice of putting food on their table or heating their house. Although the council would argue it’s only a six to seven pound increase in rent a week, for people close to the edge that is significant. Every time pressure is added onto these people, some will fall off the edge.”

He added the problem was becoming increasingly common, but was not obvious to those outside the social housing system.

He said: “Almost every time I visit the council there is a poor family with a small pile of possessions for whom social services are trying to find emergency housing. This isn’t rare, it’s just hidden.”

Tenants have been faced with rent hikes for several consecutive years. In 2009, they were hit with a whopping 14 per cent rise- the largest rent increase in the country.

The following year, a u-turn by council housing bosses resulted in increases of just 3.1 per cent instead of 5 per cent.

Christine Pitham, who lives on the Palace Road Estate near Streatham Hill, said the hikes in 2012 would have a “big” impact on the lives of working families.

She said: “Seven per cent is a hell of a lot of money and if people can’t pay, they’ll end up homeless.

“That may well happen here because quite a few people are on benefits and have big families, and wages don’t increase to cover inflation for those who are working. Every year the rent creeps up and something has got to give. The increase will affect us all in a big way.”

Another resident, Jackie Moore, said the rise could signify a slippery slope for those already struggling during the recession.

She said: “You might think ‘well I won’t pay the rent this week’ if you’re finding it tough, but then you’ll be in debt and it can harder and harder to get back on level again.”

Sylvia Daley, who has lived on the estate for 35 years, added that evicting struggling families would be unfair.

She said: “It will be very worrying if people are evicted because it’s not their fault. The elderly, like me, only get a little in state pension and other welfare benefits. When the rents rise, we never get any feedback as to how we’re supposed to manage.”

But councillor Lib Peck, cabinet member for housing, insisted the increases were necessary following cuts to the council’s budget from central government She added the council was planning to re-invest an extra £4.5million for building repairs on estates.

She said: “It should be noted that this increase is dictated by central government and as such our choices are limited.

“We understand these are hard times and that welfare reforms will only add to the pressure, but I want to assure residents that, in return, Lambeth will build on its record of improvement and continue to increase the level of investment in their homes.”

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