Laura Sharman 08 July 2015

Budget 2015: Osborne clamps down on high earners in social housing

Budget 2015: Osborne clamps down on high earners in social housing image

High earners living in social housing will no longer be entitled to reduced rents, under plans announced in today’s Emergency Budget.

Chancellor George Osborne said those earning £40,000 or more in London and £30,000 in the rest of England will now be charged full market rates for local authority or housing association properties.

The move is expected to affect around 340,000 households, raising £250m a year for the Exchequer.

Mr Osborne also said the Government would ‘end the ratchet’ of higher housing benefits pushing up rents in the social housing sector.

‘These rents have increased by a staggering 20% since 2010. So rents paid in the social housing sector will not be frozen, but reduced by 1% a year for the next four years.

‘This will be a welcome cut in rent for those tenants who pay it and I’m confident that housing associations and other landlords in the social sector will be able to play their part and deliver the efficiency savings needed.’

Mr Osborne confirmed the Government will also be pushing ahead with its plans to extend the Right to Buy scheme to housing associations tenants.

Reforms to the planning system will be published on Friday.

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