Gateshead's council tenants could be hit in the pocket as the authority is one step closer to increasing its rents.
Councillors sitting on the authority's cabinet voted to recommend to council an increase in rent and a change in service charges.
A report heard by the authority's cabinet on Tuesday stated that Government policy enables rents to be increased up to the Consumer Price Index (CPI) for September plus an additional 1%.
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The document proposed an increase of 4.1% which would bring social housing rents in the borough up by an average of £3.31 per week.
Out of the 18,750 "live dwellings" 5,598 tenants have to pay mandatory service charges and 2,218 tenants take up discretionary services.
These tenants could see a change in their service charge depending on where they live and what services they pay for.
It stated that Government rules mean that local authorities have to prevent debit balances accruing in their Housing Revenue Accounts, therefore, the council's business plan allows for £3m to held in its HRA.
It said: "Council agreed the Housing Revenue Account (HRA) 30-year Business Plan on 18 November 2021.
"Overall, the HRA Business Plan is fully costed and does not breach the minimum £3 million balance during the life of the plan (30 years).
"However, to incorporate all the cost pressures and anticipated capital investment, including new social housing stock, borrowing will need rise significantly above the current levels."
