New housing corporation tenants are paying an average of almost 23% more for a property than the previous tenant, according to research by tenants’ lobby group Woonbond.
At the same time, the rent for sitting tenants rose by an average of 4.7% in the rent-controlled sector last year. Apartments and houses in the non-rent-controlled sector were an average of 3.8% more expensive.
This has taken the average rent rise over two years to 9.2%, well above the rate of inflation, Woonbond says. Rents are also set to rise above inflation this year, because of government changes in the way rent is calculated.
Ministers want to encourage high earners to leave social housing and move into the liberalised sector or buy a property.
Woonbond is launching a campaign to have the excessive rent rises reduced. It says more people are being forced into poverty because of the high cost of social housing.
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