Fair Rents & Decent Homes

Both council and housing association rents are becoming unaffordable to people on low incomes, so Leeds Tenants Federation is launching a campaign for Fair Rents & Decent Homes.

Research commissioned by seven Leeds Housing Associations shows that the lowest paid social housing tenants are forking out between 40% and 70% of their income on rents.

Meanwhile, Leeds council tenants are paying about a quarter of their rent straight to the government and never see the benefit in repairs or better services.

Council and housing association rents have been increasing steadily over the last few years as part of a Government rent convergence strategy. Rents still vary enormously, even for similar properties, and the Government wants to bring them all into line by 2016.

But there is a fear that social housing is becoming unaffordable as rents keep going up faster than earnings. This is a real worry because social housing in Leeds provides the only affordable housing in the city. Both private rented accommodation and home ownership are now out of reach of most working people.

The new research shows that while council rents are still affordable for most households, the bottom 10% of earners could be paying between 42-53% of their weekly income in rent. For the lowest waged housing association tenants, between 39-70% of their weekly income could go on rent.

For single households at the bottom end of the wage scale, there is beginning to be a real issue of affordability in the social housing sector. Both council and housing association homes are becoming unaffordable to those on the bottom 10% of earnings.

High rents mean that social housing tenants are forced into the poverty trap. If they depend on housing benefit to pay their rent, they may be unable to afford to keep their home, once they get a job. There is a real danger that soon the only way someone can afford a council or housing association home is by being on benefit.

For council tenants the situation is worse because their rents are used to subsidise other councils. Each year Leeds council tenants pay about £1000 in ‘negative subsidy’ – money that goes straight to government to be redistributed. But about a quarter of this money does not get spent on repairs or maintenance. Instead the government adds it to general taxation to spend on other projects. So council tenants get taxed twice!

This stealth tax is called 'Moonlight Robbery' and we are part of a national campaign against it. Please see the links to the right for more information. Leeds Tenants Federation is also serving on a government task group that is reviewing the workings of the Housing Revenue Account, the system of funding council housing. We are using our position on this top board to press for an end to Moonlight Robbery.

Rents should be set at a level that working people can afford so that social housing is really affordable to all. Tenants should know what they are paying for and should see a clear link between rent and services. They shouldn’t be taxed twice or forced to go on benefits just to keep a roof over their heads.

Join Leeds Tenants Federation’s campaign for fair rents and decent homes.