Labour's £10 council rent hike shock

9.22.35am GMT Wed 27th Jan 2010

Southwark tenants could be facing a £10 a week rise in rent due to a Labour government decision which means council rents should rise to the level of housing associations in the next two years. After concerns about the effect of the policy, two years ago the date of so called rent 'convergence' was moved from 2011 to 2018 and last year further delayed to 2022. But Labour's new ruling mean councils are now expected to comply with this rule in 2012 - meaning average weekly rents for Southwark tenants rising from £80 a week to more than £90.

This year the Lib Dem led council is proposing a 1.3% rent rise, with service and heating charges frozen. This is the minimum rise possible under Labour's rules. In contrast Labour Lambeth is consulting residents on a 5% increase in rent and 8% for service charges.

Commenting, Simon Hughes, MP for North Southwark and Bermondsey, said:

"If Labour get their way thousands of local tenants will be out of pocket as a result of their bizarre decisions. How do they expect councils to plan ahead when they are constantly dithering and changing their minds?

"In these difficult times tenants need stability and I'm glad Southwark council is doing all it can to keep rents and service charges affordable. You only have to look across the border to Lambeth to see how tenants are being squeezed by big rises in rents and charges."

ENDS