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London
Tenants Federation
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The government changed the way that rents are set in 2001 / 02 - called rent restructuring. Rather than being determined locally, rents are set by a central government formula which in part reflects local property values. This national rent setting, is applied to both council and housing association tenants. The rent setting is being 'restructured' over a 10 year period with increases each year being capped at a certain level. Needless to say its adverse impact has been greatest in high value property areas like London. Rent restructuring also proposed that councils separate rents from service charges in tenants bills. (please see LTF briefing and response to government consultation on this below. The government suggested that its changes to rent setting were aimed at achieving rents that were 'affordable, fair and less confusing for tenants; reflect the qualities that tenants value in their homes and the harmonisation of council and housing association rents'. Issues of concern for London tenants are included in our briefing 2002 -
In 2004 the government carried out a review of its rent restructuring policy. Tenants, as usual, were not involved in the governments review panel. The Council for Mortgage Lenders and Housing Association landlords were though. The review concluded that the basic national rent setting policy is fine and hunky dory. Also it proposed that that local authorities should adopt the valuation of properties used by housing associations - hiking up rents even further (valuation of properties is far from an exact science and housing association valuations are inflated). The government carried out consultation on its review. The LTF responded to the consultation and organised a postcard response from TRAs in London, with the following text 'Rent Restructuring has ensured that our rents are 'affordable, fair and reflect the qualities we value in our homes? You must be joking.'
The LTF's efforts without doubt helped to delay the implementation of the governments review. Inside Housing Magazine reported 'Tony Blair directly intervened in the row over rent changes in the pre-election manoeuvre to stop tenants deserting his party en masse'. Please see LTF Newsletter 4.
After the elections, government came back with 4 options relating to its review of rent restructuring. The LTF proposed an additional option, as did the Association of London Government. Details are contained in the LTF Newsletter 5 (Rent Restructuring Special edition). It became clear that housing associations keen on more development (along with money lenders represented by the Council of Mortgage Lenders) was pushing for more funds - seemingly to be achieved by hiking up tenants rents. Whilst none of us disagree with the need for more homes that we all might genuinely afford, that housing development is being secured by hiking up rents of the poorest and most excluded members of our society, forcing more into hardship is nothing but shameful. This newsletter also reports on issues of affordability and poverty in London. Government announced at the end of '05 that it would forward its proposals. Please see our report in the LTF Newsletter 6.
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