Council seizes properties from landlord
2 years ago | 13 comments
Labour slammed for planned social housing rent rise
12:01 AM, 23rd August 2024, 2 years ago
6
Chancellor Rachel Reeves is set to reveal a big increase in social rents to help accelerate the construction of affordable homes.
However, campaigners warn that this move could leave tenants vulnerable to rising rents and increased financial strain.
According to the Financial Times, Ms Reeves plans to allow social rents to rise annually for the next decade by the Consumer Price Index (CPI) measure of inflation plus 1%.
This formula, currently used for setting social housing rents, is in place until 2026.
The expected announcement in Ms Reeves’ first budget in October, follows housing secretary Angela Rayner’s promise to bring ‘confidence and certainty’ to the social housing sector.
‘Aligning itself with landlords’
The Social Housing Action Campaign’s Suzanne Muna, speaking to the Big Issue, said that the Labour government, like the previous Conservative government, was ‘aligning itself with landlords against the interests of tenants’.
She added that allowing above-inflation rent rises for a decade is a ‘blind promise’ when no one knows what the inflation rate will be.
Ms Muna went on to say that the move would show the ‘shallowness’ of housing secretary Angela Rayner’s promise to protect renters from ‘extortionate rent rises’.
The chief executive of Shelter, Polly Neate, told the FT that measures need to be put in place to keep rents affordable if inflation spirals out of control.
Urging the government for a 10-year rent settlement
Housing associations and local authorities have been urging the government for a 10-year rent settlement arguing this would provide social landlords with financial stability.
It would also, they say, encourage investment in new homes and address a growing funding shortfall.
Rents have declined in real terms over the past decade, impacting housing budgets and home building efforts.
A long-term rent settlement, according to industry leaders, is crucial for attracting private sector investment and boosting housing supply.
However, they emphasise the need for government commitment to ensure the plan is implemented, given past disappointments with previous government promises.
Tags:
10 year rent settlement, Housing budget challenges UK, Impact on social housing tenants, Inflation, labour, Labour social housing rent rise, October Budget, rent rises, social housing, Social housing investment UK, Social rent increase UK
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Member Since October 2013 - Comments: 1630 - Articles: 3
12:35 PM, 23rd August 2024, About 2 years ago
Not to worry. I’m sure their UC will be increased at taxpayers’ expense.
Member Since June 2015 - Comments: 330
1:47 PM, 23rd August 2024, About 2 years ago
Social rents are far too low. Social Housing providers simply can’t maintain and manage their properties with the very low rents they are forced to charge.
CPI plus 1% is miniscule on rent that is less than half of market rent.
Increasing Social rents to LHA would be a very good compromise. Anyone on a sufficiently low income would receive more LHA so it wouldn’t actually cost them anything. People earning more wouldn’t be sponging so much off other tax payers. Social Housing providers would be able to maintain their stock and buy more, thereby reducing their reliance on temporary housing and hotels.
In April 2024 Social rents increased by 7.7% while minimum wage increased by over 10%. To put numbers to that Social rent that was £500 a month increased by £38.50 a month. A full-time minimum wage worker would have had a pay rise of £165.75 a month. In reality the government would have taken £46 as tax and NI but there’s still ample to cope with a rent rise and all the other price rises everyone has faced.
Member Since October 2020 - Comments: 1137
3:54 PM, 23rd August 2024, About 2 years ago
Now we see why they dropped ideas about rent controls.
Member Since March 2023 - Comments: 37
6:00 PM, 25th August 2024, About 2 years ago
Reply to the comment left by Jo Westlake at 23/08/2024 – 13:47
We should copy the Dutch system, social rents are based on your income and your need for social housing is reviewed every 10 years , in Holland you get very few cple occupying 3 bed properties because Dutch councils actively encourages people to downsize ,for every bedroom you don’t use you pay a extra 20% on your rent and your housing benefit doesn’t rise to cover it .
My friend lives in a 3 bedroom semi detached council house in Brighton and his rent is £475/month, he is the sole occupier and he earns £60,000/year.
It is a scandal that you have 167 Labour MP actually living in social housing when they earn £85,000 a year .
Angela Thornberry actually managed to buy 2 council houses , ole Lady Nugent somehow got a council house, bought under right to buy ,sold it and then got another council house and did it again.
The way we run social housing in this country is a scandal
Member Since September 2018 - Comments: 3508 - Articles: 5
8:58 AM, 27th August 2024, About 2 years ago
Increase it as high as you like! I am past caring now. We need Labour to screw tenants themselves directly – maybe then the blind will see!
If HA’s/Councils don’t get increases via rents they will not be able to continue to run (badly) their own accommodation. Less money for maintenance etc and so that means more claims of disrepair and mould etc…inevitably they will have to sell off properties to be able to fund even the most basic of maintenance on whatever they have left.
Member Since October 2013 - Comments: 1630 - Articles: 3
4:23 PM, 27th August 2024, About 2 years ago
Reply to the comment left by Reluctant Landlord at 27/08/2024 – 08:58
I can see ex-council leaseholders being scammed for even higher maintenance costs.