A motion to raise the price of social and affordable housing rent by 7% has been passed by Ipswich Borough Council.
A lively council meeting on Wednesday saw the proposals face fierce backlash from Conservative members, but strong support from the governing Labour Party.
Councillor Neil MacDonald, portfolio holder for housing, said the increase will "ensure the stable and long-term supply of affordable housing".
He pointed towards soaring costs for the council, adding the authority "relies upon its rental income stream to fund all activity, including management, maintenance and improvement of council homes."
The proposals come after the government announced there would be a 7% rent increase cap for the year 2023/24.
Conservative members slammed the plans, with Councillor Richard Pope saying: "I had hoped he opposition would not vote for this and would help residents who can't afford this increase.
"We can do something about this and vote against it."
Cllr Philippa Gordon-Gould added: "Do not imply we are not critical of those who are in power.
"There is no reason we can't work together to stand up for the people of our town."
However, the governing party defended the proposals by pointing at rising costs and suggesting that without the rise, essential services such as the maintenance of council properties could not be carried out.
"Private rents in Ipswich have rocketed," said Cllr Carole Jones.
"They are already more expensive than these homes and there is no guarantee you will have a landlord who will look after you like our team does.
"We have a maintenance programme and, most importantly, security of tenancy.
"Councillors who care about housing in Ipswich should support this."
The passing of the motion will also see affordable housing rents capped at Local Housing Allowance (LHA) rates and an increase of £2 per week for service and utility charges for the sheltered housing schemes.
Cllr MacDonald concluded: "In terms of helping tenants, they are in cheaper rents to begin with.
"Only 30% will have to actually pay the full whack of the increase due to the support in place.
"Given all that has happened in central government, I won't take any lectures from Conservatives about running a successful housing department."
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