Government criticised for creating “increased burden” on tenants
With an inflation-busting rent increase due to hit Hounslow residents this April, the London Borough of Hounslow has joined forces with other Housing Chiefs across the capital, to fight against the Government's imposed rent increase.
In a joint letter to Margaret Beckett, from seven other London Authorities, Hounslow’s lead member for Housing and Community Safety, Cllr Phil Andrews, has criticising the government, for creating an increased burden on those who are already struggling to make ends meet.
Cllr Andrews said, “From April, council tenants across London are set to see their rent increase between 6% and 9% - which is at least double the rate of inflation.
“This is because a formula set by the Government used the Retail Prices Index figure from September 2008, when it was at its peak, but since then, inflation rates have plummeted.
“We work tirelessly to provide the best possible value for money services, but these rent increases will have a negative impact on our most vulnerable residents, many of whom are already struggling to make ends meet during the recession.
“Tenants, who tend to be on fixed incomes, such as pensioners and those just above the benefit threshold, will have to find the extra money just as Britain slides further into recession.
“Taking into account this very tough economic climate, we are urging the government to take a more reasoned approach and to keep any rent rise to an absolute minimum.”
Eight local authorities - Brent, Camden, Harrow, Hillingdon, Hounslow, Kingston, Southwark and Westminster- have now come together to fight against this rise. The capital's housing leaders are urging the government to take immediate action and reconsider its decision, and look again at the formula it uses to calculate rent to ensure a fairer system can be put in place next year.
The council will be working with Hounslow Homes to offer welfare rights and money advice so that tenants’ entitlements to benefits can be maximised. This will minimise the impact that these rent increases will have, especially in high value areas, on tenants with low or fixed incomes.
Hounslow council has already approved up to £1.6m of Housing Revenue Account (HRA) reserves to be used for the Rainbow Project. This one-off funding will go towards projects looking to bring together all sections of the community, inviting groups to bid for grants to fund local projects identified by the residents. In addition, a further £4 million will be invested in home and estate improvement projects specifically identified by tenants.
Applications for round two of the Rainbow Project is currently open for both small and large grant schemes. The deadline is March 13.
February 21, 2009