HIGH EARNING TENANTS TO PAY MARKET RENT TO STAY IN SOCIAL HOUSING

Council housing authorities like Kingston must be bracing themselves for a likely backlash from any of their tenants earning £40,000 or more, following the Government’s announcement that all social housing tenants on higher incomes will have to pay full market rent to remain in their homes.

The new ‘pay to stay’ policy is just one part of the Government’s latest welfare reforms, announced in last month’s Budget, will be compulsory for both housing associations and local authorities, and will affect any tenant in London boroughs earning £40,000 a year, and those outside the capital with an income of £30,000.

Although there will be ‘consultation’ with housing providers, it seems likely that the policy will come into force next April, or shortly afterwards. Currently, councils like Kingston have no idea what many of their tenants earn – but that’s also due to change if the Government gets its way over a related proposal to force all social tenants to disclose their income to their landlord. Watch this space . . .