The Government has backed down over plans for an inflation-busting rent hike for Hounslow Homes council tenants.

Residents of Hounslow Homes, the council's housing arm, were set to see their bills rise by a whopping 6.95 per cent this April.

But ministers, who are responsible for setting the rates, bowed to pressure from leaders in Hounslow and neighbouring boroughs by agreeing to halve the average increase to 3.1 per cent.

The final figure for Hounslow had yet to be confirmed as the Chronicle went to press this week but is likely to be roughly half the planned 6.95 per cent.

Cllr Phil Andrews, Hounslow's executive member for housing, described the Government's U-turn as 'great news' for tenants.

Civic Centre chiefs had teamed up with seven other London councils last month to pen an angry letter to housing minister Margaret Beckett demanding a lower increase to give hard-up tenants a break.

Council leader Peter Thompson said: "This news will bring a relief to tenants on fixed incomes, such as pensioners and those just above the benefit threshold."

London Councils also welcomed the move, which will be backed by extra government funding to help local authorities balance their books.