Affordable Housing 6

MQT on 2012-02-22
Session date: 
February 22, 2012
Question By: 
Nicky Gavron
Labour Group
Asked Of: 
The Mayor


Last July you issued a press release ('Mayor secures £1 billion a year affordable homes package for London', 14 July 2011) detailing that you had 'secured an agreement that (Affordable Rent) rents in London will only be charged at an average of 65 per cent of market rent, and will not exceed new benefit caps'.

In December you said only 40 out of 60 contracts had been signed and we understand from London Councils that the boroughs were only 'presented with bids in late August and early September' (Landlords stuck in affordable rents stand-off, Inside Housing 23 September 2011).

a) At what stage in the negotiations was this 65% average rent agreement decided? b) What enforceable guarantees have you received that this agreement will be met? c) Are you still confident housing associations will deliver this average? d) Do you still believe no new Affordable Rent homes built with money from the 2011-15 funding round will be above the benefit cap level?

Please consider a, b, c and d as individual questions.


Answer for Affordable Housing 6

Answer for Affordable Housing 6

Answered By: 
The Mayor

A) The 65% is an average across the entire programme. Some rents will be higher and some lower depending on the specifics of the schemes and the providers. The average rent figure of 65% was achieved through negotiation during the period between providers initially submitting offers and when individual agreements were reached B) Each provider has, or will have, an individual contract with the HCA which will novate to me in April 2012. C) Yes. D) Each provider has submitted programmes which account for welfare caps in agreeing their contracts.