Residents and businesses renting a garage from Warwick District Council will face a hefty 10% increase from April after figures were agreed by councillors.

The move follows market research that found that garages rented privately can cost up to £85 – nearly double the average cost of a council-owned one.

A £4 increase across the board was approved last year which took the average monthly rent to £46.71. Now it has been agreed to increase rents by 10% over the next five years with increases linked to inflation after that.

A report considered by councillors explained that while there were waiting lists for a number of garage sites, there was less demand for other sites.

It explained: "Where appropriate these sites are being considered for future redevelopment as part of the overall garage strategy for the future.

"The location of many of the garage sites and quality of the land, landscape and garage condition constrain the levels of rent that can reasonably be achieved. It is considered that many sites require investment to improve their condition, provide greater community benefits, extend the life or accommodate the development of additional affordable housing.

"Any additional income generated from garage rents for the service will help to alleviate the loss of rental income from dwellings and ensure the continued viability of the Housing Revenue Account business plan."

Further research showed that, on average, 26% of the total garage stock lay empty which was worth approximately £266,650 in potential income over a year.

The impending rent rise will mean that the average garage rent for council tenants will go up by £0.98 per week to £10.78. Non-tenants pay VAT on their rentals so they will see an average rise of £1.18 per week to £12.94.

Council house rents will also go up from April with the 1.5% increase set by central government. It will mean the average weekly rent of a two-bedroom property will increase to £88.46 and a four-bedroom home to £109.24.