Councils join forces for legal challenge against Mayor's plan to relax 'affordable rents' rules

 
Boris Johnson: 'I already have a job'
PA
Simon Freeman13 March 2014

Nine London town halls today joined forces to launch a High Court challenge against Boris Johnson’s plan to relax rules for “affordable rents” in the capital.

Islington Council is spearheading the legal bid by seven other Labour councils and independent Tower Hamlets to overturn an amendment to the London Plan which they believe will squeeze local families out. At present, council chiefs in central boroughs have been able to cap rents on social accommodation within new developments to around 40 per cent of the market rent. Under the Mayor’s plan, the cap will be raised to 80 per cent.

According to council figures, that would see the weekly rent for a typical three-bed in Hollway rise from £142.57 a week to around £352.

The boroughs will today argue that this is unaffordable for many local people.

Councillor James Murray, executive member for housing and development for Islington Council said: “Across London, we need to keep rents down in new affordable housing so that people on low incomes can actually afford it.

“That’s why our nine boroughs are challenging the Mayor’s decision to let rents in new affordable housing rise to near-market levels.

“The Mayor’s plan would price many local people, especially families on low and medium incomes and vulnerable people, out of large areas of London. It is totally wrong for our city.”

The Mayor of London’s proposal applies to new affordable housing built in London. Existing council tenancies and the majority of housing association tenancies will not be affected.

Private rents in London are almost double those in the rest of the UK.

A spokesperson for the Mayor of London said: “The Mayor wants to maximise the provision of affordable housing across London, whereas allowing boroughs to impose individual rent caps would significantly constrain financial capacity and have the potential to shut down affordable housing supply. As part of the Mayor’s record 100,000 low cost homes programme affordable rents across the capital will be at or below 65 per cent of market levels on average, and are capped at housing benefit allowance levels, offering a range of different options for low income Londoners.”

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