Rent reduction ”wrong decision”, claims NHF
Instead of imposing a reduction, the government should have frozen housing association rent rates.
Such is the assertion of the National Housing Federation (NHF), which points out the decision by ministers to lower rates by 0.9 per cent next year could have an impact on the ability of those with jobs in housing to build affordable homes.
Although the rent restructuring would offer benefits to some tenants in the short term, the organisation points out such cuts may also affect the delivery of community services.
The organisation points to a recent study it carried out revealing that 69 per cent of housing association residents would be prepared to forego a 0.9 per cent rent cut if community services were protected.
"A far better balance, which protects the interests of current and future tenants – and retains the sector’’s capacity to deliver homes and services – would be a rent freeze," NHF chief executive David Orr points out.
Such news come as Mr Orr recently took up a position as head of a taskforce created by shadow housing minister Grant Shapps which will investigate ways in which to increase social housing mobility.
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