A housing trust that manages more than 9,000 properties including homes for the elderly has hiked its rents by 6.1 per cent.

Paragon Community Housing Group, a merger between the Richmond Churches Housing Trust and the Elmbridge Housing Trust, said it decided to increase the costs for 2012-13 by 0.5 per cent more than the 5.6 per cent retail price index (RPI) inflationary measure.

The group also added £2 per property, per week, where the costs were under the Government’s target level.

Paragon Community Housing Group said in a statement: “The decision to levy this increase was not taken lightly and was debated extensively by both management and the boards. Research confirmed that Paragon’s rents were in line with other providers in the locality and in some cases were lower.

“However, we understand that in the current economic climate any increases are unwelcome to our residents and we are acutely aware of the difficulties being faced by all households at this time.”

The non-profit organisation has also increased service charges by £5 per property per week.