London Councils has backed the introduction of a weekly rent convergence rate of at least £3 to help boost the social housing sector.
The cross-party group representing councils in the capital has argued the change will ‘promote fairness’ among those living in social housing properties of a similar nature by ensuring rents are aligned quicker.
Alongside the rent convergence rate, the group has also called for a London Formula Rent Reset to be implemented.
According to the group, the reset will support affordable housing for tenants by allowing boroughs more ‘flexibility’ when determining social rent.
Based on recent figures, London Councils has proposed that the capital’s boroughs will be required to make cuts of £269m over the following four years, reducing spending on council housing management and repairs, as well as on resident services.
The group has cautioned that social housing budgets across London boroughs are experiencing ‘managed decline’, emphasising that to support social housing resources, rent convergence is the ‘top priority’.
Cllr Grace Williams, London Councils’ Executive Member for Housing & Regeneration, said the upcoming Budget ‘must be a decisive moment’ for ‘fixing the crisis in council housing finances’.
She added: ‘London faces the most severe housing pressures in the country, with one in 50 Londoners living in temporary accommodation and in need of a permanent home.
‘We are keen to work with ministers in ensuring that a renewed approach to rent convergence is fair for tenants, puts council housing budgets in a healthier position, and enables the investment in standards and new social homes we all want to see.’
