Affordable Rent 2

Meeting: 
MQT on 2014-03-19
Session date: 
March 19, 2014
Reference: 
2014/1491
Question By: 
Tom Copley
Organisation: 
Labour Group
Asked Of: 
The Mayor

Question

You previously confirmed in response to question 2013 / 4206 that the Strategic Housing Market Assessment did not undertake an assessment of the need for Affordable Rent when it is charged at various rent levels (i.e. at various points between target rent and the maximum of 80% of market rent). Evidence provided by the boroughs has shown that in Westminster a family-sized Affordable Rent property charged at 80% of market rent could require a household income in excess of £135,000 a year. In the same borough, the same property charged at target rent would require a household income of £28,000. From this extreme example, it is clear that Affordable Rent meets significantly different needs when charged at different levels. Given you have not measured how this tenure meets various needs at different rent levels, how can your housing target be said to meet local need?

Answer

Answer for Affordable Rent 2

Answer for Affordable Rent 2

Answered By: 
The Mayor

Affordable Rent is set within the Local Housing Allowance caps so the scenario above would not happen. There are no Affordable Rent homes being provided  with rents as high as this question seems to claim, whereas around a third of Affordable Rent homes currently provided are at, or very close to, social rents.

The variability in Affordable Rent levels, along with its stated role in meeting the same needs as social rent, is the reason why the SHMA did not need to analyse the requirement for Affordable Rent separately from social rent.