You are here: Home - Buy to Let - News -

Council tenants earning over £60,000 to pay higher rents

Written by:
Higher-earning council tenants may be forced to pay rents closer to private market values.
Council tenants earning over £60,000 to pay higher rents

The new housing minister Kris Hopkins has announced that council tenants who earn more than £60,000 a year may be forced to declare their income to their landlords, who will then have the option to charge them a higher rent more akin to private market rental levels.

A consultation paper suggests that, from April 2015, higher earning council tenants should no longer benefit from the caps on social rents.

The consultation,slated to finish on 24 December, aims to offer social tenants more, better quality private and social housing.

Hopkins indictaed that such a move would allow local Housing Authorities and landlords who rent to social tenants to better predict their revenues and allow them to invest in more properties.

The government also proposes changing the annual rental calculation methodology for council tenants. It proposes using the Consumer Price Index as a measure instead of the Retail Price Index currently used. The government suggests this will increase house building enabling local authorities to better plan investment in housing, supporting the £23m of public and private investment planned from 2015.



There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Your Mortgage Guides

Your Mortgage Award Winners 2020-2021

Download our guide to the best mortgage lenders in the UK

Read More >