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Proceeding contribution from Jeremy Corbyn (Labour) in the House of Commons on Thursday, 5 May 2011. It occurred during Backbench debate on Social Housing in London.


Social Housing in London

Possibly, yes. I would like that Government to bite the bullet, just as Harold Wilson's Government bit the bullet in the 1960s and 1970s, and were prepared to introduce rent controls and security of tenure in the private rented sector. That policy area needs to be developed. Another important issue is the increase in the notional rent levels for local authorities and housing associations to 80% of market rates. That has had absolutely devastating effects on the affordability, or otherwise, of council properties in areas where councils choose to charge 80%. As my hon. Friend the Member for Ilford South (Mike Gapes) intervened on me, I shall cite the case of his borough. The average income in Redbridge of non-housing benefit tenants is £381 a week, and the average weekly rent is £102 a week. The median market rent of 80% of 2010 levels is £160 a week, so tenants in Redbridge are looking at a £60 a week rent increase, which is pretty bad, and I question the affordability of paying £160 a week on an average income of £381 a week. Other boroughs are in a far worse situation. In Kensington and Chelsea, average income for non-housing benefit tenants is £370 a week, and current average rent is £113 a week, with 80% of market levels at £440 a week—in other words £110 a week more than such a tenant earns, so totally unaffordable. The borough with the lowest average income in London is Barking and Dagenham, where income levels in 2010 for non-HB tenants were £329 a week. Current average rent is £91 a week, and 80% of market rates is £148 a week. Even in Barking and Dagenham, which is regarded as ““the most affordable place in London””, we are looking at 50% of pay going on rent alone in the public sector, never mind the private sector. The figures are available for every borough, and they make very grim reading indeed. The discretionary payments to London authorities to try to ameliorate the change to housing benefit should be much greater and more permanent, and the Government and the Select Committee on Communities and Local Government should look at rent controls and security of tenure in the private rented sector.


Secondary information

Type
Proceeding contribution
Reference
527 c797-8 
Session
2010-12
Chamber / Committee
House of Commons chamber
Subjects
Council housing Finance Greater London Housing stock Private rented housing Social rented housing Rents Security of tenure Housing trusts
Link
View this Proceeding contribution on www.publications.parliament.uk