The government’s decision to cut the amount tenants will have to pay in rent next year means that plans to build thousands of new social homes will have to be ditched.
Housing associations will say today that their income will drop by at least £260m next year if ministers continue to link social housing rent to inflation.
The government distributed a consultation paper last month saying it would set a floor of a 2% rent reduction and would absorb the deficit inflation dropped even further in a bid to protect both tenants and housing associations.
But the National Housing Federation says a rent freeze is needed.
The Department for Communities and Local Government said ministers recognised associations’ concerns.
18/08/09 Times 1, 3
