Government ‘affordable’ housing cash snubbed by Islington Council
At over £1,000 a month, rents would still be too high under coalition plan, says Town Hall
Published: 6th May, 2011
by ANDREW JOHNSON
HOUSING chiefs are to turn their back on a share of a £2.2bn government pot for new “affordable” homes, claiming that any housing built under the scheme would not be affordable at all.
In rejecting the new scheme, Islington Council has placed itself on a collision course with the coalition government over housing provision.
Under the programme the 29 housing associations in the borough could charge up to 80 per cent of private rents – an amount still out of reach of most people in Islington.
Affordable housing is a huge issue in the borough. There are 12,000 people on the waiting list for homes, and 6,000 families are overcrowded.
Many families are being forced to move out of the borough due to high rents. There is widespread concern that even more people will be forced to move out because of the cap introduced on housing benefit.
The Town Hall believes the 80 per cent level is disingenuous, allowing the government to say it is building affordable homes without actually doing so.
Islington is the first council to reject money under the new Affordable Housing Programme, which aims to spend the money by 2015.
Town Hall figures show that a family renting a three-bedroom house in Islington would expect to pay a minimum of about £340 a week in the private market – £1,473 a calendar month. Under the so-called “affordable” scheme this would be reduced to £272 a week – £1,178 a month.
In a letter to housing associations, Labour housing chief Councillor James Murray wrote: “There is an intense need for social rented housing in Islington. Islington considers that the ‘affordable rent product’ is not affordable to households to whom we owe a housing duty.”
Instead, the Town Hall is proposing to offer housing associations discounted land to build homes on.
“While we are being outspoken and robust we are making it clear we are going to give something back in return in terms of land and capital,” Cllr Murray added.
“If we want to sign up to the government’s affordable rent programme and receive grants we would have to allow housing associations to charge up to 80 per cent of private rents. That is not an affordable rent. We are offering to put up land and £1m subsidy instead.
“Once the housing benefit cap comes in it will squeeze even more people out.”
A spokeswoman for the government’s Homes and Communities Agency, which is introducing the scheme, said: “We have held discussions with Islington and development partners who have stock and development pipeline within the borough, so we are aware of their opinion and views with regards to affordable rent.
“As a local authority, they will look at the most appropriate options that can address their local need and they can utilise existing alternative means of financing.”