Have a question?
033 3772 0409

Legal News

Replace affordable rents with living rents, says new report (22 June 2015)

Date: 22/06/2015
Duncan Lewis, Legal News Solicitors, Replace affordable rents with living rents, says new report

A new report is calling for the existing affordable rents scheme to be replaced by a living rent scheme, under which the government would be asked to commit £3 billion a year to allow new homes to be let as social housing.

Social housing publisher 24 Dash reports that the research commissioned by the National Housing Federation and Joseph Rowntree Foundation – and carried out by Savills – estimates that with a £3bn investment by the government, matched by £7bn of private money via social landlords, a total of 80,000 new homes could be built every year.

The housing programme would be underpinned by a commitment by social landlords to let 40,000 new homes at “living rents”, replacing the current “affordable rent” scheme.

Living rents reflect local earnings and are not linked to market rents, as affordable rents are. Living rents aim to prevent households being left unable to afford to live after they have paid rent.

The report sys that by avoiding this poverty trap, more people would have a stable foundation from which to build a life and a career.

The current affordable rents system, where rents involve new and re-let social homes, has rents set at up to 80% of market rents. This system is likely to result in the current housing benefit bill rising from £24bn a year to £37bn a year by 2040. The living rent framework could reduce the housing benefit bill by £5.6bn a year by 2040.

Director at Savills Housing Consultancy and co-author of the living rents research, Helen Collins, said:

“Living rent is an innovative way of increasing the supply of affordable rented homes, helping reduce poverty and improving access to work.

“A stable and affordable rented home is crucial in ensuring people can build a life for them and their families.

“With private rented housing in limited supply and high rents in some areas acting as barriers to low-income households, more genuinely affordable rented homes are needed for those unable to access home ownership.”

Chief executive of the Joseph Rowntree Foundation, Julia Unwin, said:

“A lack of genuinely affordable homes is threatening people’s financial security – if action to tackle rocketing costs isn’t taken soon, it could start to impact on the economic recovery.

“Living rents would boost quality of life, lower the housing benefit bill and leave people with more money in their pockets. We will never achieve our full economic potential until we tackle the high levels of poverty and disadvantage in the UK.

“Providing more low-cost rented homes is a vital part of this.”

Duncan Lewis Housing Solicitors

Duncan Lewis is a leading firm of housing solicitors able to advise social housing tenants and private sector tenants on a wide range of housing matters, including:

• Anti-social behaviour
• Disrepair of rented property
• Housing Benefit
• Housing possession
• Section 146 Notice (notice to quit)
• Tenancy agreements
• Unlawful eviction.

Duncan Lewis is also a leading provider of Legal Aid housing advice.

For expert legal advice on housing law, call Duncan Lewis housing solicitors on 020 7923 4020.

Call us now on 033 3772 0409 or click here to send online enquiry.
Duncan Lewis is the trading name of Duncan Lewis (Solicitors) Limited. Registered Office is Spencer House, 29 Grove Hill Road, Harrow, HA1 3BN. Company Reg. No. 3718422. VAT Reg. No. 718729013. A list of the company's Directors is displayed at the registered offices address. Authorised and Regulated by the Solicitors Regulation Authority . Offices all across London and in major cities in the UK. ©Duncan Lewis >>Legal Disclaimer, Copyright & Privacy Policy. Duncan Lewis do not accept service by email.