Council leaders have challenged the Government’s halving of the average guideline rent increase for 2009/10, claiming it has only ‘discredited’ their ability to set appropriate rents.
The Government announced it would to cut its guide rent increase from 6.2% to 3.1% for council tenants after pressure from councils, as reported in The MJ (see 29 January, page 2).
But the 30 councils lobbying for an end to the Housing Revenue Account subsidy system say the move does not go far enough, and only reinforces the view that rents need to be set by councils.
The HRA system has been labelled as unfair because it means tenants’ rents pay for improvements to housing in other parts of the country.
Birmingham City Council’s cabinet member for housing, John Lines, said the move only proved the Government could not be trusted to set the right rent rises. He said: ‘The Government’s rent policies are entirely discredited, and the proposals will not provide any direct benefit to our tenants.’
Waverly BC’s chief executive, Mary Orton, said: ‘This climb-down proves our case that
tenants’ rents should be set locally by councils. The announcement was the sound of a minister stepping firmly on to the back foot.’
Sutton LBC leader, Sean Brennan, has written to housing minister, Margaret Beckett, calling for a cut in rent.
He said: ‘The Government has backed down and listened to us. Next, we want the Government to think again on the whole unfair system.’
Waltham Forest LBC and Westminster City Council were among those councils leading the lobbying effort.
Mrs Beckett said: ‘We have listened to what councils and their tenants have said to us about the planned rent increases, and we are determined to help tenants get a fair and affordable deal.’
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