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I visited and old friend who has just moved in to a Council Flat
We had a good old natter about his move etc and I asked him how much rent he was paying to the Council in Gateshead
The reply came as a bit of a shock - his rent is £85.00 a week
For a similar Flat, I would rent at £91.00 a week
At one time in Newcastle , rents for Council Tenants was around half what I was charging as a private Landlord
The council rent is now very close to the LHA rate in Newcastle for a single person
We get bad press about high rents but I think Council Rents have risen a lot faster in the past 10 years then our rents have
Have others noticed this little fact in their areas???
Learn Change and Adapt ?????
All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.
you are quite correct I dont I have ever seen in the press any mention of Rent Rises in the Council sector
I think the RLA Or NLA should really make something of this and show some facts
we get it in the neck all the time and its unfair
Core difference with a social tenancy is of course the usual lifelong tenancy which gives security to families.
Downside is you are probably stuck in that location for life - as SRS has the least potential to change location vs PRS/Owner Occ.
Latter is increasingly important in an era where jobs are no longer for life and staying employed may mean serial relocation.
In Ashington on streets where I have properties Social Housing are charging £395 per month when I can only get £350 and my properties are in much better condition
Its interesting Topic
This aspect of renting has never been reported
I really think the NLA RLA should do some fact finding and report whats going on here
Im sure shelter would like to see the results and the general public too
Council can charge max LHA rate as 75% of tenants are on benefits.
Since the 1977 change to needs based allocation it will be pretty rare for a working household to be granted a new social tenancy - as there will always be someone poorer.
That said - in PRS the biggest increase in LHA claimants since 2010 has been around a doubling of working households claiming LHA.
Sorry should have said that is for a 2 bed terrace. Housing benefit is £380 per month
Its something I've noticed in Swindon.
I live in an ex LHA 3 bed terrace that I am informed would rent for £800/£850 pcm. Speaking to some of my clients living in very similar council houses the rent charged is between £90 and £120 per week, a considerable discount. I also have colleagues living nearby in Housing Association flats, where the rent has now typically reached £750 pcm for a 2 bed flat. LHA rate for a 3 bed is £167pw, 2 bed is £135 pw.
As with the rest of the country there is a shortage of council houses. I am surprised at the level of rent charged by HAs, which is comparable to, if not exceeding PRS rental. I thought HAs were part of Social Housing but in my area, at least, they do not appear to be providing affordable housing.
I may be making an incorrect assumption, but it appears HAs are now charging market rents to those that would have difficulty renting in the PRS - benefits recipients, poor referencing, no available guarantor, etc.
HA rents are on average 13% higher than LA rents.
Some HAs are charging 50th percentile LHA - as that is what they based rents around for new builds in pipeline in 2008 when LHA came on stream.
HA in Surrey charges £1000 pcm rent for a new build 2 bed flat.