COUNCIL tenants in Redditch are set to see their rent fall dramatically over the next few years following the launch of a new system.

Up to 7,000 homes across the town will be affected by the 10-year programme, which has been introduced by the Government.

During a housing committee meeting on Monday, Redditch councillors agreed to adopt the new system, which calculates rent differently.

Councillor David Cartwright said: "At the moment, Redditch Council can set any rent it wants but in the future it won't be able to.

''The rent will be based on property values and also average earnings.

''It will mean there is not such a gap between council rents and housing association rents."

He added: "As a result, many of the tenants in Redditch will see their rents beginning to fall over the next few years instead of increasing."

The council rent will be calculated and set by next February for the next 10 years and Mr Cartwright said the move should help curb problems with rent arrears.

He said: "I think this will have a significant impact for our tenants because rent will go down a lot, which has got to be good news."

The move will see the council lose about £1 million a year in rent. But further Government initiatives will see more money injected into various housing services over the next few years.