Social rent cap must not leave councils out of pocket, say Green Party councillors
Green Party councillors who are members of ruling administrations in England have written to Simon Clarke, the Secretary of State for Levelling Up, Housing and Communities, asking for a guarantee that councils will not be out of pocket as a result of the proposed cap on social rents. They also point to how local authorities would be undermined without a corresponding cap on private sector rents. A government consultation ends today, which has sought views on proposals to cap social housing rent increases for the coming financial year, with options at 3%, 5% and 7% being considered. In their letter to the Secretary of State, the councillors say: “In our view, a government-imposed cap on social rents is not the way to address the cost of living without equivalent action on private rents. We are living through a housing crisis, with private sector rents becoming increasingly unaffordable in many parts of the country. To cap social rents while taking no action in the private sector and failing to provide local authorities with additional funding would undermine local authorities’ ability to build or purchase affordable homes, just when they are most needed to house those least able to afford inflated private sector rents.” Councillor Douglas Johnson, who is Chair of Housing Policy Committee on Sheffield City Council, said: “Without extra funding, the cost of any social rent cap will be borne by local councils and their tenants. This would mean less money for councils to spend on crucial services and maintenance; less support available to those in serious hardship and reductions in essential insulation work to reduce tenants’ bills. We need a guarantee that the government will stump up the extra cash needed to fund a rent freeze and a guarantee that councils will not be out of pocket.”
Councillor Douglas Johnson