Announcements on the anticipated rate of rent inflation for 2010 have now been made and rents will have to fall by an average of 0.9 per cent.
Despite fears of excessive reductions, the stabilisation of wider economic conditions has averted apocalyptic scenarios predicted by some.
The Tenants’ and Residents’ Organisations of England has always adopted a pragmatic approach, stating that most tenants would accept freezes instead of reductions in rents next year if this meant that landlord viability was not adversely affected - provided this is something that landlords agree with their tenants at a local level.
However, there should always be a quid pro quo. While tenants are willing to be reasonable and not prepared to force their landlord into financial difficulties, they should be rewarded in the long-term for their generosity. The most obvious and reasonable approach is for a corresponding below inflation increase in subsequent years, as well as an additional amount to recognise the support that tenants have given.
Many organisations which have been calling for rent freezes, such as the National Housing Federation, may have been surprised by the reasonableness of this stance. However, tenants are not greedy. They expect to pay an affordable rent and in return, deserve to receive high-quality housing and services.
This stands in stark contrast to recent pay announcements for the chief executives of social landlords.
Inflation-busting pay packet increases of 7 per cent over the past year make it clear that most chief executives are not willing to share the pain.
Daily pay levels now exceed £650, which is more than many tenants have to live on for a month.
It is about time that greater equality was achieved in a sector that is supposed to have the interests of tenants at its heart.
Michael Gelling is chair of TAROE
Have your say
You must sign in to make a comment
Readers' comments (2)
phoenix | 30/10/2009 10:38 am
I do wish people would get their facts right-the DCLG issued a consultation paper on rent levels in relation to negative RPI with a closing date of 9th October.Following this process the DCLG will issue a Direction to the TSA on what should happen to rent changes on 2010/12.No such direction has yet been issued with much of the feedback being that a rent freeze would be the best option, particularly if lending covenants would be breached by a rent reduction.In the case of the latter situation the TSA are already issuing exemptions to RSLs from any rent reduction.
What Mr Gelling conveniently forgets is that last year Local Authorities were given extra subsidy by the DCLG to halve the rent increase as a vote winner--if thats good enough for LAs then its good enough for RSLs !!--where's our subsidy to cover rent decreases!
The plain fact is, if rental income decreases service quality will suffer and so will work on Decent homes and stock improvements--is that what TAROE wants ?!!!
Unsuitable or offensive? Report this comment
David Hambly | 05/01/2010 12:57 pm
Housing Associations like London Strategic Housing are taking their working tenants to the cleaners every year with excessive rent increases. They have been happy to take 6% increases last year and tell their tenants tough if you don't like it go to the private sector pimps. The rent levels are already a scandel. next year 20 Billion will be spent on housing benefit making private sector landlords rich. Since most social tenants claim benefits the cost will be picked up by the taxpayers fools that they are!! We need cheap affordable housing that allows people to work and pay their rents without state benefits. Presently many tenants can never get a job because they simply couldn't pay the rent and would be no better off working than being on the dole. Housing should be a right a mark of citizenship in your own country, at present it is a commodity bought and sold at the highest possible price. Access to social housing in the UK is a national scandel. If you don't have 8 children and come from Somalia you are toast!
Unsuitable or offensive? Report this comment