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Housing association and council house tenants to converge

08 February 2010
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Guideline rent increases for tenants in council houses will be halved for this year and next, confirms Housing Minister John Healey.
 
Mr Healey said the reduction would ensure rents would be fair and affordable for tenants and councils alike.
He stated that he remains committed to keeping rents down and this reduction would not lead to steep increases in the following years. This is the second year in a row in which the government is taking steps to lower council house rents.
Housing association jobs will in turn feel positivity, as housing association tenants will also start paying similar rates to council tenants for closely matching properties in the same sort of areas, due to the government's policy of rents convergence. Though there is no fixed date for convergence as of yet, as the government's main priority is to see that rent increases for council tenants are at a reasonable and affordable level next year.
Mr 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."

He continued on the emphasis to make things easier for tenants after the economic downturn: "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."


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