Social housing plans to be abandoned
Author: The Times - Aug 18, 2009
Plans to build thousands of new social homes will have to be abandoned because of the Government’s decision to cut the amount tenants will have to pay in rent next year, The Times has learnt. Housing associations will warn today that their income will fall by at least £260 million next year if the Government continues to link social housing rent to inflation.
The retail prices index is expected to fall below minus 2 per cent in September, the month when rent is set for the next year, presenting the prospect of real cuts in social rental payments for the first time.
In a consultation paper sent out last month the Government said it would set a floor of a 2 per cent reduction in rent and would absorb the deficit if inflation dropped even further. Ministers hoped this would protect both the tenant and housing associations, who have lost millions during the recession due to falling house sales. But the National Housing Federation, which is pressing for a rent freeze, said that although tenants would only benefit by a small rent reduction of £1.36 a week the impact on housing associations could be critical.
Ruth Davison, NHF campaign director, said the formula linking rent payments to inflation was designed for positive inflation. “Rents have never been cut in the history of social housing, even during the Great Depression and two world wars,” she said. “The decision to reduce rents at the same time as Gordon Brown has announced a £1.5 billion social housing programme is political ineptitude.”
Related Pages
Business urges more economic development powers for councils
Shifting from acute to primary and community care
by Paul Carter, Local Government Chronicle
How can we find the funding for infrastructure in 2012?
by Alex Thomson, Localis (in The Guardian, Local Government Network)
Is the Localism Act a lawyers' charter?
by Michael Burton, The MJ
Local government's role in healthcare
by Alex Thomson, Localis (in The Guardian, Healthcare Network)
A New Era for Council Housing?
Posted in Planning, Housing and Economic Development
The Big Green Society
Posted in Reform and Personalisation of Public Services
Power to the People
Posted in Planning, Housing and Economic Development
Commission Impossible?
Posted in Reform and Personalisation of Public Services
Redesigning Local Services Conference
[Mar 29, 2012]
‘Blue Labour and the Politics of Place’
[Feb 9, 2012]
Roundtable: The Future of the Coalition Government’s Education Policy
[Jan 24, 2012]
Roundtable: What makes shared management initiatives work
[Jan 4, 2012]
- "Localis is fast gaining a reputation for pre-empting the localist agenda, producing thought provoking research and practical policy ideas"Anthony Seldon, author and political commentator
- "Localis’ commitment to decentralisation crosses party boundaries, and their research illuminates policy problems with new practical thinking"Prof George Jones, LSE
- "Localis offers a great blend of a passion for innovation, grounded practical ideas and unswerving belief in the possibilities of local governance"Derek Myers, Chief Executive, Royal Borough of Kensington and Chelsea
