COUNCIL house tenants in Hyndburn are facing an average rent rise of 67p per week.
The proposed increase from April 1 is being recommended for approval by the housing services committee tomorrow.
An average 67p rent cap has been set by the government on housing authorities around the country.
If the council opted for a higher rent rise they would lose out on housing benefit subsidy.
Hyndburn's director of community services, Mr Edgar Bignell, said: "A larger rent increase would, in our view, be financially imprudent."
At the same time keeping within the rent cap will severely limit what the council can spend on council house refurbishment and improvement.
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