09 November 2001
According to the Association of London Government, 60,000 out of the capital's 550,000 council tenants face paying more than £100 per week by 2012 – the final year by which landlords must revise their rents to comply with a new formula based on local earnings and capital values.
But it is not just tenants in London who face hefty long-term increases. While rents in the capital are projected to rise by 14%, increases of 20% are forecast in northeast England and Yorkshire.
The ALG is hoping for a rent cap of about £100–£110 per week. It has also asked the government to delay the start of restructuring by 12 months to April 2003, to allow more time for consultations with tenants.
Gwyneth Taylor, head of housing at the Local Government Association, said the LGA was in favour of the restructuring in principle but was concerned about the implications in certain areas. 'There needs to be some sort of affordability cap beyond which rents cannot be increased.'
The LGA also wants changes to subsidy rules which mean that councils which raise more through rents currently receive less subsidy from the government instead of being able to spend more on management and maintenance.
In areas of low demand where rents go down, added Taylor, councils will need more subsidy to improve their stock, otherwise people will not wish to rent. 'It will be a vicious circle under which properties continue to decline and deteriorate.'
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