New Rokesby Place homes rent set at London Affordable Rent could be over £50 a week higher than the original Social Rent!

Guest post by Philip Grant in a personal capacity

I have watched and listened to the webcast of the Planning Committee meeting for the Rokesby Place application, so can now comment on the information given by the Planning Officer about the difference between the levels of Social Rent and London Affordable Rent.

The figure she gave for London Affordable Rent, for 2022/23 for a 4-bedroom house, was £198.03 a week. This comes from the table published by the GLA on the Mayor of London's website.

  London Affordable Rent from GLA website

The figure she gave for Social Rent, for 2022/23 for a 4-bedroom home, was £183.18 a week. This figure comes from the Government's website on social housing controls, and is the MAXIMUM that can be charged as Social Rent for a home of this size.

 

 

Social Rent caps for 2022-23 from the Government rent standards website

This gives the around 8% difference between Social Rent and LAR which Planning Committee were told.

If the Planning Officer had used the latest London local council average Social Rent figure from the GLA affordable rents table (2020/21), uprated by the statutory maximum annual increases (2021/22 = 1.5%, 2022/23 = 4.1%), the comparative Social Rent for a 4-bedroom home would be £147.75 a week. That's over a £50 a week difference!

What conclusion can we draw from this? 

Do Brent Council intend that any new homes they build for Social Rent will be for the maximum Social Rent level allowed by the Government? 

Or do they take the view "why not make them all London Affordable Rent?", and charge tenants an extra 8% for their homes, but still claim they are providing genuinely affordable housing to Brent residents in housing need?

Stop and Fix Universal Credit - demonstration Neasden Parade on Saturday

From Unite Community

This year Christmas will be cancelled for thousands of families claiming the government’s new all-in-one benefit, Universal Credit. 

Unite is calling on the government to stop and fix Universal Credit before even more families will be forced to use food banks and struggle to heat their homes this Christmas.

The government has also admitted that the Universal Credit helpline for claimants will be closed for the majority of the Christmas period, making life even more difficult for claimants needing advice and emergency help. 

Unite Community members and campaigners will be holding street stalls in 70 towns and city centres across the UK on Saturday 2 December to help raise awareness of who will be affected by Universal Credit.The Brent event, with Kilburn Unemployed Workers Group,  will be at Noon until 2pm on Saturday at Neasden Parade, Neasden Shopping Centre. Other demonstrations listed HERE

As well as the long waits for the benefit there are other problems with Universal Credit such as the complex online-only application process and the housing benefit element not being paid direct to landlords causing rent arrears and in some cases eviction.  

Liane Groves, Head of Unite Community says:

Despite knowing that Universal Credit causes serious problems for those claiming it the government is ploughing ahead regardless while claimants are descending into debt, relying on food banks and getting into rent arrears and in many cases are being evicted from their homes. 

In order to claim Universal Credit claimants need an internet connection which many simply can’t afford. 

Unite is demanding a cut in the long waits to receive money, for people to be able to apply in job centres not just online, better help for people when the system fails, landlords to be paid directly to avoid people getting into rent arrears and losing their homes, and an end to benefit sanctions for people in and out of work. 

In Britain there are currently 505,549 households receiving Universal Credit but a further 1,513,970 will be put on this winter and this figure is expected to reach 5,915,290 once the government has finished rolling it out fully by March 2022. 

Over 1.2 million low paid part-time workers will also be affected by Universal Credit and for the first time ever people in work could face being sanctioned (having their benefits stopped) if they don’t prove to the job centre that they’re searching for better paid work or more hours. 

The Trussell Trust, the UK’s biggest foodbank, says demand in areas where Universal Credit has already been rolled out has increased by an average of 30 per cent and landlords report a huge increase in rent arrears.  

Community members will be handing out leaflets with information and getting people to sign a petition to call on the government to stop the roll out of Universal Credit and fix the problems with it. 

Will Affordable Housing Position Statement address Planning Committee's concerns?

The Planning Committee of July 23rd (the meeting where the Minutes were mysteriously unpublished for weeks before pressure finally got them unearthed or created LINK ) considered a wide range of issues. The most prominent was a report on affordable housing which reflected concern over whether the Council was achieving a sufficient level of affordable housing in developments and in particular developers' practice of reducing the amount of affordable housing once development was underway through viability assessments. Essentially the assessments claim the developer is not making a sufficient return on the development and that the only way this can be addressed is by increasing the proportion of market price/rent housing in the scheme.

The next Planning Committee on October 14th will discuss a 'Brent Affordable Housing Position Statement' (see below) that if approved will be posted on the Brent Council website and made available to developers.

The accompanying Officer's Report by Stephen Weeks seems somewhat grudging at times over the necessity for such a statement.

Planning Committee is recommended to endorse the statement. It balances the Council's necessity to be clear about the priority it places on certain aspects in the delivery of affordable housing in association with new developments, against the need to not essentially repeat extensive existing robust policy and detailed advice that currently exists as a national, London and Brent level.

As such the Position Statement does not appear to make new policy but clarifies existing policy. It may fall short of the Planning Committee's expectations as exemplified by support at the July 23rd Meeting for Islington Council's Development Viability Supplementary Planning Document. The Brent report states:

...As such the production of a Supplementary Planning Document, essentially duplicating much of the existing relevant guidance against a background of resource constraint is recommended as inappropriate.

Finally the weight given to the Position Statement is limited:

The position statement can be regarded as a material planning consideration. However, the weight accorded to it will not be as strong as for instance Supplementary planning Documents, which have statutory status if adopted in accordance with regulations.

The background to the position statement is the stark fact that average housing prices in Brent are 12 times the average annual wage and that rents have risen by 60% over the last 5 years.  It seeks to maximise the amount of affordable housing through Section 106 obligations and states that 'the priority need in Brent is for affordable housing at rents well below market levels (social and affordable rented' with affordable home ownership and other forms of intermediate affordable housing a lesser priority although necessary for a 'balanced housing offer'.

This is contrary to the Conservative government's recently announced policy prioritising the building of ';affordable' housing for sale.

The preference for thorough viability assessments to be carried out at the pre-planning stage rather than later in the development cycle addresses some of the concerns raised at Planning Committee in July.

Now this Party knows how to react to unaffordable luxury housing!

As luxury flats, marked to foreign residents and investors, go up across London, including here in Brent at Willesden Green Library and in nearby Barnet at West Hendon, renters are taking action as local people are priced out of the market:

Attempt to clear up confusion on council rent increases not entirely successful

Pete Firmin

Speaking to Brent Executive last night, Pete Firmin, secretary of Brent TUC, a South Kilburn resident and Labour Party member, lambasted the Council's stance on council rent increases.  He said that the annual above inflation increases, which in his case would mean an increase of 40% over 5 years, should be unacceptable to a Labour Council.

The plans were included in the Housing Strategy officers' report which Firmin described as impenetrable. Several people had tried to make sense of it, including Brent Central potential Labour candidate Kingsley Abrams, and had been unable to say with absolute certainty what was proposed. His local Kilburn councillors had said they knew nothing about it and when he asked Cllr Margaret McLennan and Cllr Michael Pavey, both members of the Executive what it meant, they confirmed rent rises over five years to 80% of market rents.

He said that the Council would be adding to the financial problems of people already hit by benefit cuts, council tax benefit changes and higher food and energy prices. He asked why tenants were being forced to fund new build through the rent increases and contrasted that with the freezing of the Council Tax.

Firmin said that this was not something the Council had to do and he circulated information from Islington Council  on its approach.

Muhammed Butt defended the Council's approach saying that new housing was imperative. Cllr  Margaret McLennan, lead member for housing, said that the policy referred to social rent and not market rents (a search of the report reveals that the only mention of social rent is one about the possible national fixing of these).  She said that the Council had not yet decided on their definition of an affordable social rent.  She said that that the planned new build was good news ands that the plans had receved a high level of endorsement.The priority was to house people on the waiting list.

Andy Donald, head of Regeneration and Major Project, said the new build would go straight to an 'affordable' rent of between 60% and 80% of market rent. This was the government's definition and the Council would have to charge that to use a government grant. If new build was at an 'affordable rent' it would help fund the refurbishment of existing stock. The actual rent rises would be fixed in February 2013 and would be roughly 4% higher in 2014-15.

Cllr Pavey waded in to say that Pete Firmin should have discussed this earlier, the Islington document was interesting but why hadn't Pete circulated it beforehand (and anyway they had more land available than Brent) and then ended with what is fast becoming his mantra: this is not perfect but the best we can do in difficult times.

Many of us left not entirely clear on what was proposed and I suspect that was also true of the Executive members who voted to approve the strategy.

Projection of Brent Council rent increases

The table below shows the potential rent increases as proposed in Brent Council's rent strategy using the formula set out in the Appendix. The Retail Price Index (RPI) will be used for 2014-15 and I have set that at 3.5%. It will be replaced in the formula in 2015-16 by the Consumers Price Index (CPI) which is generally a little lower than the RPI and I have projected that at 3%.  Obviously this could change drastically depending on inflation and the economic situation so treat the figures with caution.

I have based the table on a current notional rent of £100 per week. (You can download a copy of this as an Excel spreadsheet and enter your own rent to see the projected increase for HERE)

Year	Rent (Weekly)	RPI/CPI	+0.5%	"+1%	Sub-Total	plus £2 per  week
2014-15	100.00	3.50	0.50		104.00	106.00
2015-16	106.00	3.18		1.06	110.24	112.24
2016-17	112.24	3.37		1.12	116.73	118.73
2017-18	118.73	3.56		1.19	123.48	125.48
2018-19	125.48	3.76		1.25	130.50	132.50
2019-20	132.50	3.97		1.32	137.80	139.80

London needs a million new homes by 2021 research claims

This statement from London Councils shows the depth of London's housing crisis:

London's future prosperity is in doubt unless steps - such as lifting restrictions on councils borrowing against their assets - are taken to build nearly a million homes by 2021, a new analysis shows.

London Councils, which represents London’s 33 local authorities, has carried out a new analysis of Department for Communities and Local Government (DCLG) and Greater London Authority (GLA) official housing statistics. The research reveals that:

• between 2011 and 2021, 526,000 new homes will need to be built in London just to keep up with new housing demand (London’s population is expected to increase by over one million in the next decade)
• only 250,000 homes will be built on current projections
• a further 283,000 homes will also need to be built to along with the 526,000 on current supply levels to meet both new demand and the backlog of housing need in London
• in total, 809,000 homes are needed by 2021 to meet new housing need as well as the backlog of housing need.

Current housing supply levels suggest that there will be a deficit of 559,000 homes by 2021 – which even when excluding factors such as overcrowding still amounts to 329,000 fewer homes than London will require. This will put London’s future status as a global city at risk while adding huge pressures to government and individuals’ budgets.

Mayor Sir Steve Bullock, London Councils’ Executive Member for Housing, said: “The news that London needs almost a million homes by 2021 is a scandal - the last time we faced such an acute housing supply crisis was after the Second World War. This is a long time coming and the capital’s future prosperity is on the line.”

“Rising housing costs are not only a problem for those struggling to rent but for any Londoner wishing to buy their own home.  If the housing crisis is not solved, costs for the London economy will continue to spiral. More working families will struggle to rent and to buy, more people could be forced out of the capital and homelessness is very likely to go up.”

London Councils’ discussion paper, which was released ahead of the party conference season, sets out a range of policy solutions to boost housing supply. This includes lifting the “Housing Borrowing Cap” which prevents councils investing in housing – a move supported by the wider housing and property sector .
Other policies include increasing investment in the rental sector, supporting smaller scale builders, and promoting sustainable development near London’s tube and rail network. 

The report estimates 134,000 homes could be built if all these measures and others were taken forward.

Mayor Sir Steve Bullock added: “With London’s population expected to top nine million by 2021, we need to use the party conference season to explore the radical strategic steps needed to build almost a million homes - such as lifting unnecessary restrictions on councils borrowing to invest in new homes and helping small businesses win construction contracts.”

Pub Quiz fundraiser for Brent Housing Action on Monday

Brent Council Tax unchanged but rents increase in 2013-14 budget

The Budget Report going before the Brent Executive on February 11th recommends no change in the barometer Band D Council Tax and little change in the other rates.  This decision contrasts with early budget documentation that built in Council Tax rises over the next three years.  Since then Eric Pickles has declared that rises above 2% have to be approved by a local referendum and attacked Councils who were considering raising the tax to protect services. His mix of bribery and threatened opprobrium seems to have done the trick.

Brent Housing Partnership tenants will pay an average rent increase of 3.74% and there will also be rises in service charges. The table below shows that almost 4,000 households will face an increase of nearly £5 a week or £250 annually raising an additional million pounds.  Hillside Housing Trust (Stonebridge) rents will rise by 3.1% on average.

The new approach to social housing is explicit in the report's comment from the Brent Housing Partnership:

BHP agrees with the recommendation to increase rents on average by 3.74%. We recognise that this will place an additional financial burden on the 32% of Brent Council tenants that are currently are not in receipt of housing benefit. However BHP recognises that Brent is now operating a self financing housing business and that this increase is necessary to ensure the success of the Council's business plan.

Brent housing crisis hits the headlines

Wembley and Willesden Observer 10.3.13

PRIVATE TENANTS DEMAND: Decent, Secure, Affordable Homes For All

I have received the message below from London Private Tenants. Census data released last week showed a significant rise in the number of Brent residents living in the private rented sector. Brent Council leader Muhammed Butt has pledged action to improve the standard of homes in the sector but tenants also want to see the reintroduction of rent controls and increased security of tenure.

Join us on Tuesday 18th December at City Hall (GLA HQ) to stand up for the rights of private tenants to decent, affordable, secure homes.

When: 9am to 10am  - City Hall, The Queen's Walk, London SE1 2AA   [To help organise, meet 8:45am @ Cafe Fratelli, nearby]

We will be demanding that rent controls are brought back, local housing allowance (LHA) is increased with inflation, secure tenancies are reintroduced and greater protection and support is given to private tenants.
                                                                                                                                                                                                                                                                                             
On Tuesday 18th Dec the London Assembly Housing and Regeneration Committee are holding their last meeting as part of the review of London's Private Rented Sector. The theme of this meeting is 'tenant and landlord rights' and the purpose of the review is to 'evaluate different options for achieving higher property standards, greater security and more affordable tenancies'.

Tenants have been given little voice in the process so far, so come and join other private tenants and supporters to make our demands known and put pressure on those attending to stand up for private tenants.

Bring banners, Santa hats, placards, lots of noise ..and warm clothing...

Carol singing!
Tenants have adapted some classic carols to the theme of housing and will be singing on the day, so come ready with your best singing voice

The meeting
This is a public meeting and some of us are planning to go in, we want to make the presence of tenants and supporters felt, so please join us. At the start, we'll be presenting our 'Dear Santa' scrapbook to the Chair of the Committee, Len Duvall.
                                                                                                                                                                                                                                                                   Private Tenants Demands...
                                                                                                                                                                                                                                                                 Affordability

Bring Rents Down!
Housing is a basic necessity, like food and water. Actions to maximize rental income at the detriment of tenants show this has been forgotten. Rent controls do exist on pre-1989 tenancies and we demand these controls be introduced to all tenancies.
                                                                                                                                                                                                                                                                  Remove all bogus Letting Agents 'fees' for tenants!
Letting Agents provide a service to Landlords and charge them for doing so - they should not take further 'fees' from tenants. Agency 'fees', reference 'checks', admin 'fees' and leaving 'fees' are all costs that have been created in recent years by and for Letting Agents to increase their profits and exploit the basic need to have a home.

Length of Tenure
                                                                                                                                                                                                                                                                   Bring Back Secure Tenancies!
Until 1988 most tenancies were secure. Today, private tenants are given a six month tenancy with few rights. Across London, people are being evicted by landlords who know they can charge extortionate rents for substandard properties. Tenants should be able to live in their chosen community and home, near schools, friends and family, as long as they wish. Housing should not be a business like selling cars or renting holiday homes. Bringing back rent control will force rents down to affordable levels.

Tenant and Landlord Rights

Decent Standards!
Less than half of private rented homes meet the Decent Homes Standard. Many homes in London are in an appalling, dangerous condition and it is often children, the elderly and vulnerable adults who are worse affected. The link between poor housing and the health, wellbeing and life chances of tenants is striking. 

Tenant Empowerment!
The GLA should ensure that empowering tenants is central to the policy recommendations that come out of this review. Presently, landlords have many rights, and tenants have very few. This balance of power needs to be shifted so that tenants are empowered to enforce their right to be involved in all decision-making about their housing, from rent to maintenance to length of tenancy. The GLA should ensure that the voice of private tenants is heard at all levels of policy making. There is a tradition of landlords being thoroughly consulted in discussions about the private rented sector but tenants being ignored. The London Assembly has the power to see this change.

Private Tenants in London are mobilising! Why not get involved with a group near you? Or set one up of your own.

- Housing for the 99% .,.. housingforthe99@gmail.com
- Hackney Housing Action Group...hackneyhousinggroup@gmail.com
- Digs - Hackney Private Renters Group.. hello@hackneyrenters.org
- Haringey Housing Action Group... housing-action@haringey.org.uk