BRUM BLAMES INFLATION BUSTING RENT RISE ON GOVERNMENT

21-02-2008

Is this the other side of Birmingham’s 1.9% Council tax increase – an inflation busting 5% increase in rents for its tenants?

Not according to the Council – they claim that rent and service charges have been set “in accordance with national government policy.”  In other words, it’s the government’s fault.

They claim there’s a mandatory policy to bring local authority rents and housing association rents in line with each other by 2012/13. At present local authority housing rents are lower than rents charged by housing associations.

Assuming Birmingham’s Cabinet approves the increase, tenants will pay an average weekly rent of £60.28.
 
Councillor John Lines, Cabinet Member of Housing said: “The increase in rents meets a government requirement. However, almost all of this rent increase will be paid back to the government through the subsidy system, a tax on tenants.

“For the majority of tenants (72%) who currently receive housing benefit, the changes will continue to qualify for housing benefit.
 
“I will continue to ensure the tenants of Birmingham receive value for money for their services and am committed to increasing the quality of services tenants receive.”