Pay to stay
The Government believes that it is not right for high income families to be paying low social housing rent when they could afford to pay more or their home could be used by someone in greater need.
They are presently considering giving the option to social landlords to charge a 'fair rent' to high earning tenants. They say the additional income could be used for new affordable housing to increase the overall housing supply.
This is presently out for consultation. Do you feel that there should be differing rent levels for the same property type and service?
Give us your views on the poll on our home page.
On 10th September 2012 the Fed carried out a small survey to seek tenants views on the issue and 70% felt that high earners should not pay a higher rent.
The consultation ends today the 12th September and we will be sending our views forward.
The proposed threshold for high earners is £60,000 so it will affect a relatively small number of people. We are concerned that if this 'Pay to Stay' idea is introduced it will push high earners into a decision as to stay and pay more or exercise the Right to Buy, which may well entitle them to up to 75% discount on their purchase price.
It is thought therefore that the present economic subsidy of staying put and paying the same rent could well be up to one third lower than if they were subsidised through exercising their Right to Buy and receiving a discount.Return to Advice