COMMUNITIES AND LOCAL
GOVERNMENT News Release (044) issued by COI News Distribution
Service. 6 March 2009
Housing Minister
Margaret Beckett has today announced new support to help councils
cut their planned rent increases for tenants in the current
economic climate.
The average guideline rent increase for 2009/10 will be halved
from 6.2 per cent to 3.1 per cent for local authority tenants, to
encourage councils to reduce the amount tenants would have to pay
for the coming year. Mrs Beckett announced that the Government
would make funding available to support local authorities to make
the changes, and revise their rents for 2009/10 accordingly.
The changes to the guideline rent increase means tenants should
see a marked drop in their proposed average rent increase for the
coming year from around £4 per week to approximately just under £2.
Mrs Beckett said:
"We are facing challenging economic times and it is right
that this Government offers real help now to council tenants. We
have listened to what councils and their tenants have said to us
about the planned rent increases, and we are determined to help
tenants get a fair and affordable deal.
"Ultimately, it is for each council to take up this offer of
support, but I would expect them to ensure their tenants receive
the full benefits." The Minister has already indicated that
she will look again at the guideline rents for 2010-11 to ensure
that council tenants continue to pay rents that are affordable and fair.
Notes to editors
1. The guideline rents increase for 09/10 was set in September at
a time of much higher inflation but the new guidelines will
override this and support tenants during the current economic
uncertainty, whilst making sure that local authorities still have
the money to carry out essential repairs and maintenance.
2. The Government is carrying out a wide-ranging review of the
Housing Revenue Account led jointly by Communities and Local
Government and the Treasury. The review is looking at how we can
provide the best and most effective system for local authorities
to maintain and manage their housing stock and will report to
Ministers in the Spring, before going out to consultation.
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