North/South Divide: Will Affordable Rent Split The Country In Two?

Affordable Rent is designed to give housing associations greater freedom and ability to maximise the delivery of new social housing at a time of reduced state subsidy. But question marks remain over the sector’s appetite for the scheme, whether it can really help to build 150,000 new homes over the next four years and whether it is only viable in southern parts of England. In areas of Teesside and the north east, an affordable rent is roughly 20% higher than a social rent, giving landlords more room for manoeuvre. In the West Midlands an affordable rent on a three-bed house works out at £125 per week - £40 more than a social rent. Farther south, the main concern is affordability. The wider differential between social and market rents in London and parts of south east England means a rent equivalent to 80% of market rates would bring in considerable extra money for groups such as Affinity Sutton, which traditionally builds about 1,300 homes per year. Affinity Sutton, could in theory raise average rents on new homes and relets in Brighton and Hove by 71% (to £155 per week). But group finance director Mark Washer is worried that only families on benefits would afford them. “We could take the view that housing benefit will take the strain, but that pushes people further into the benefits trap,” he says. Read more on 24dash.