Affordable Rent

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  • #38026
    JamesPickering
    Participant

    Hi,

    Has anyone been consulted by their RSLs about the new affordable rent model?

    It seems to have the dangers of creating a poverty trap for people in large properties who will need to secure really well paid jobs in order to be better off working.

    I haven’t seen much about it but i know the proposals have gone in already.

    If anyone has any further information or opinion on this i would be grateful.

    #107073
    Lee Fearon
    Participant

    James

    I think the plan is for allow RSLs to charge median rent in the BRMA less 10%, which will mean they won’t be much below LHA and will actually be higher than LHA rates in some cases. The plan is to allow RSLs to use the income generated by the higher rents to fund new housing projects.

    I’m not quite sure whether HB will be restricrted to LHA levels, but am almost certain that the proposed £500/£350 pw welfare cap will apply.

    Tricky one for RSLs, who could be tempted to use the new “affordable rent” provisions to hike rents in order to fund new builds, but may find that their current tenants who rely on welfare benefit are unable to afford the increases due to the caps.

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