Councils such as Wandsworth, Lewisham, Lambeth and Camden have had to impose rent hikes of more than 5% because of rent restructuring, which aims to bring all social rent levels in line by 2010. The rate of inflation according to the Treasury new measure, the consumer price index, is just 1.4%.
Councillor Keith Fitchett, cabinet member for housing at Lambeth, said he had argued against the rise because the government would benefit from it, not the council. Under rent restructuring, the government will reduce the annual grant to Lambeth to reflect its increased rent income.
Fitchett wanted to write to tenants explaining the reasons for the 5.5% rent rise but was told by council lawyers he could not as it was critical of government and would break the Local Government Act's code of conduct.
Fitchett said: "The government is forcing councillors to do their dirty work for them and refusing to allow councillors to apologise."
He also criticised the formula used for working out rents under rent restructuring, which takes into account local house prices, local earnings and the condition of the home.
London councils have been hit particularly hard because rent restructuring will bring their rents into line with housing association and private rents, which are higher in the capital.
A spokesman for the Association of London Government said: "Council rents in London have increased by just under £3 a week. Councils in general have tried to keep increases down where financially feasible."
An ODPM spokesman said: "We are absolutely convinced that rent restructuring is right and that all social rents must reflect size, condition and location in a fair and balanced way."
Source
Housing Today
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