Government confirms HRA subsidy figures
The government has published the final version of its housing revenue account subsidy determination, which covers council rents, management, maintenance and repairs funding.
Housing minister John Healey said the finalized version was the same as the proposals consulted upon at the end of last year.
The Communites and Local Government department document confirms that the average guideline rent for council tenants will rise by 3.1 per cent in 2010/11. The rise is the same as for 2009/10, but almost half the 6.1 per cent proposed over a year ago and later scrapped.
The 3.1 per cent average rise means council and housing association rents will converge in just over three years, but the date could change in line with movement in rent levels in the coming years.
The rent restructuring process is intended to broadly align council and housing association rents for similar properties in the same areas.
Major repairs allowances will increase by 2.25 per cent, as proposed in the consultation last 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.’ He said there would not be steep rent increases in future from the change in convergence date as the date was not fixed.
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