Lambeth Rent Increase

[Lurdan]

most council rents are increased in line with a formula that goes back years, the rate of inflation the previous September, plus 1.5% (I think) and maybe the flexibility to add another £2 on top - so £4 a week is not a massive increase - especially compared to private renters when they renew their contracts

Government guidance changed last year. From 2015/16 CPI is to be used rather than RPI and for the next 10 years (or until it's changed again) the Guidance is to increase rents by CPI + 1%.

The 'up to £2 extra' has gone. It was part of 'rent convergence' which they've ended a year earlier than originally intended. Also from 2015/16 tenants earning over £60,000 can be charged full market rent (for those Councils prepared to take on the cost of determining who this applies to). And new tenancies 'should' be let at 'formula rent' (this is defined by a complicated formula set out in the guidance)
https://www.gov.uk/government/publications/guidance-on-rents-for-social-housing

This is only guidance it should be stressed - Councils can do something else. In September 2014 RPI was 2.3% whereas CPI was 1.2% implying a loss in projected revenue for most Councils. (Hence why Tower Hamlets have gone for a slightly larger increase to make up for the shortfall).

 

[marty21]

Government guidance changed last year. From 2015/16 CPI is to be used rather than RPI and for the next 10 years (or until it's changed again) the Guidance is to increase rents by CPI + 1%.

The 'up to £2 extra' has gone. It was part of 'rent convergence' which they've ended a year earlier than originally intended. Also from 2015/16 tenants earning over £60,000 can be charged full market rent (for those Councils prepared to take on the cost of determining who this applies to). And new tenancies 'should' be let at 'formula rent' (this is defined by a complicated formula set out in the guidance)
https://www.gov.uk/government/publications/guidance-on-rents-for-social-housing

This is only guidance it should be stressed - Councils can do something else. In September 2014 RPI was 2.3% whereas CPI was 1.2% implying a loss in projected revenue for most Councils. (Hence why Tower Hamlets have gone for a slightly larger increase to make up for the shortfall).

Cheers, I was dealing with rents til last year so hadn't kept up. The market rent thing is pretty unworkable, can't imagine Councils volunteering to do that, there is nothing in the tenancy agreement asking for income details or linking it to rents. It could be incorporated into new tenancy agreements but new tenants are unlikely to earn £60k a year

 

[Lurdan]

The market rent thing is pretty unworkable, can't imagine Councils volunteering to do that, there is nothing in the tenancy agreement asking for income details or linking it to rents. It could be incorporated into new tenancy agreements but new tenants are unlikely to earn £60k a year

While Housing Benefit still exists Council's or managing agents doing financial checks as part of anti-fraud measures could expand them I guess, but yeah I suspect this will only be taken up in a minority of 'flagship' authorities if at all.

 

[thriller]

7

Any idea what the percentage rise is in Lambeth ?

Here in Tower Hamlets it's 2.5% - slightly above the Government's guidance. Not complaining - just interested.

"average increase of 2.9%. this is the lowest increase in 10 years and means the avearge weekly rent for a2 bedroom council property is now £108.02 (prices can vary based on locations and property".

 

[marty21]

While Housing Benefit still exists Council's or managing agents doing financial checks as part of anti-fraud measures could expand them I guess, but yeah I suspect this will only be taken up in a minority of 'flagship' authorities if at all.

HB is due (dependent on the Election) to end in 2016 as Universal Credit takes over - so I'm guessing that the fraud officers will go over to the DWP

 

[Lurdan]

"average increase of 2.9%. this is the lowest increase in 10 years and means the avearge weekly rent for a2 bedroom council property is now £108.02 (prices can vary based on locations and property".

Cheers - presumably Lambeth are applying a larger rise for similar reasons to Tower Hamlets.

That average Lambeth 2 bed property rent is lower than the comparable Tower Hamlets 2 bed average which will be £112.00.

The 'rent convergence' project had aimed at Social Housing rents becoming 80% of local market rents subject to a 'Social Rent cap' for a given property size (the latter intended to stop the Housing Benefit bill doing a Godzilla). In 2014/15 terms the Tower Hamlets local market rent for a 2 bed property was calculated as £442, 80% of that £354 and the 2 bed Social Rent cap £146. Illustrating that the project was devised before the private rental market in London was allowed to let rip.

 

[Lurdan]

HB is due (dependent on the Election) to end in 2016 as Universal Credit takes over - so I'm guessing that the fraud officers will go over to the DWP

Well that was the plan - it doesn't currently seem to be on course

It occurs to me that even if it happens as planned there would still be Council anti-fraud checks relating to Council Tax and Council Tax Reduction so some fraud officers will presumably be retained.

However I was just reading a National Housing Federation briefing which says that in the consultation for that changed rent policy guidance the Government indicated an intention to make it a legal obligation at some point in the future for social housing tenants to declare it if their income rises above £60,000, although it will be up to Councils/HA's whether they take account of that declaration to raise rents. I'd imagine the long term goal would be more about 'nudging' 'undeserving' people out of social housing than about raising rents.

 

[marty21]

Well that was the plan - it doesn't currently seem to be on course

It occurs to me that even if it happens as planned there would still be Council anti-fraud checks relating to Council Tax and Council Tax Reduction so some fraud officers will presumably be retained.

However I was just reading a National Housing Federation briefing which says that in the consultation for that changed rent policy guidance the Government indicated an intention to make it a legal obligation at some point in the future for social housing tenants to declare it if their income rises above £60,000, although it will be up to Councils/HA's whether they take account of that declaration to raise rents. I'd imagine the long term goal would be more about 'nudging' 'undeserving' people out of social housing than about raising rents.

I doubt there a lot of tenants on incomes of £60k plus , will it really be worth tracking them down?

 

[Puddy_Tat]

the Government indicated an intention to make it a legal obligation at some point in the future for social housing tenants to declare it if their income rises above £60,000

Think this was largely following daily fail outrage about Bob Crow being on a decent salary and living in a "subsidised" council flat.

The political will may be less now that comrade bob is no longer in a position to enrage the daily fail...

 

[Greebo]

<snip> comrade bob is no longer in a position to enrage the daily fail...

Until they find out for certain that he didn't end up in Hell

 

[Puddy_Tat]

Until they find out for certain that he didn't end up in Hell

i misread that as 'Hull'

i think it's time i went to bed...

 

[Greebo]

<snip>i think it's time i went to bed...

Far be it from me to tell yet another man to go to bed.

 

[ViolentPanda]

secure tenancy for life, RTB, repairs done (eventually) property maintained , rent at way below market level -

#BrokenBritain

When I explained the difference between Lambeth social housing rents for a 1-bed flat (£90-£110-ish) and local private rents for the same (around £200-£250-ish) to a Private Eye journo at the weekend, she was absolutely shocked at how high private rents were, in a "humble" area like Brixton.

 

[ViolentPanda]

i misread that as 'Hull'

You say "toe-may-toe", I say "toe-mah-toe".

 

[Pickman's model]

When I explained the difference between Lambeth social housing rents for a 1-bed flat (£90-£110-ish) and local private rents for the same (around £200-£250-ish) to a Private Eye journo at the weekend, she was absolutely shocked at how high private rents were, in a "humble" area like Brixton.

as though decades of gentrification had never happened.

 

[ViolentPanda]

as though decades of gentrification had never happened.

I suspect that she wasn't expecting the differential to be 100% or more, but yeah.

 

[Pickman's model]

I suspect that she wasn't expecting the differential to be 100% or more, but yeah.

back in the mid-90s when i rented a former council flat in homerton (3 bed, £150/wk) the differential was there: i moved from there into a 2 bed council flat for which i and my flatmate paid iirc something in the region of £60/wk.

 

[marty21]

When I explained the difference between Lambeth social housing rents for a 1-bed flat (£90-£110-ish) and local private rents for the same (around £200-£250-ish) to a Private Eye journo at the weekend, she was absolutely shocked at how high private rents were, in a "humble" area like Brixton.

humble Brixton