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Rent rise to hit 7,000 in Oldham
Reporter: by OUR LOBBY CORRESPONDENT.
Date online: 11 May 2009
Tenants to pay extra £4 a week
NEARLY 7,000 social housing tenants in Oldham have been hit by a 5.5 per cent rent hike — for having the wrong type of landlord.
Householders will pay an average of £4 per week more because they live in housing association properties, compared with thousands of council tenants across the borough whose rise will be under £2 a week.
The sharp discrepancy follows the Government’s decision to cap council rent increases, but not those of the growing majority of tenants of other social landlords. Across Oldham. 6,779 housing association tenants will miss out on the help — but 14,231 council tenants will benefit, according to Government figures.
To add insult to injury, those in housing association homes already pay significantly higher rents than their counterparts in traditional council homes — an average of £69.95 last year, compared with £61.63.
Housing Minister Margaret Beckett was accused of a cynical attempt to grab headlines when she pledged £175m to help tenants through challenging economic times.
The announcement, made in March, failed to mention that housing association tenants would be excluded from the help on offer.
Sarah Teather, the Liberal Democrat housing spokeswoman who uncovered the figures, said: “There is no reason why housing association tenants are able to afford this rise any more than council tenants.”
But the department for communities and local government insisted it was the responsibility of each housing association to set affordable and fair rents.
A spokesman added: “Registered social landlords are independent and have a different business model to councils that enables them to raise finance in a different way.”
A 5.5 per cent increase on £69.95 is £3.80, but that average housing association rent figure is for March, 2008, which means there has already been an increase since then.
Therefore, this year’s weekly rise is likely to be at least £4, while the increase for council tenants was capped at 3.1 per cent.
Comments
For one Housing Associations build and maintain a higher standard of property than local authority stock. Housing Associations also dont have the same legal powers for new tenants when/if they fall into rent arrears. Therefore they have to swallow the cost or present court cases. And if were also being honest, how many actually pay their own rent as opposed to the rent being paid by HB payments?
Have Your Say
Not for profit so why are there rents much higher, mother rent for a 1 bed roomed flat went up by 13.3% yep its an housing association. But all the council are doing is moving the costs
By Keith @ 11/05/2009 14:26:57