Published 3 February 2010
Housing Minister John Healey confirmed a good deal for tenants in council houses today after he announced guideline rent increases will be halved for 2010-11. Mr Healey said the reduction would ensure rents remained fair and affordable for council tenants and for councils.
Mr Healey emphasised that he remained committed to ensuring rents remain fair and affordable for tenants and that this reduction this year would not lead to steep increases in the following years. The move means that for the second year running the government has taken steps to lower rents for council tenants.
Mr Healey also referred to the Government's policy of rents convergence that will see Local Authority and Housing Association tenants will eventually paying similar rents for similar properties in similar areas in place, but said there was no fixed date for convergence. He made clear that the Government's starting point and first concern was to see rent rises for council tenants next year at a reasonable and affordable level, given the pressure on all households due to the economic downturn.
John Healey said;
"This government's priority during this downturn has been, and will continue to be, ensuring that council rents remain as affordable and fair as possible to tenants. This is why for the second year running we have decided to halve the guideline rents increase to 3.1 per cent. This has only been achieved at a cost to central Government, but it was the right thing to do.
"This does not mean steep rent increases for council tenants in the next few years after 2010-11 due to bringing dates forward for when council and RSL tenants rents will match, as there is no fixed date set for when RSL and LA tenants' rents will converge."
Notes to editors
1. The HRA Subsidy determination for 2010-11 including Local Authority Average Guideline Rent increases was issued today and will be available on the CLG website from 4 February.
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