Rows between housing associations and town halls over rent levels are threatening proposed developments under the government’s £1.8 billion affordable homes programme. Housing associations received development funding allocations under the programme, which allows them to charge rents at up to 80 per cent of market rates on new properties and some re-lets. In parts of the country, including London, the new ‘affordable rents’ will be much higher than traditional social rents. However, before their funding is signed off by the HCA, associations must demonstrate that they have the support of the relevant local authority. While associations agreed outline bids with councils earlier in the year, certain details - including rent levels - have altered following negotiations with the HCA, which wants landlords to charge the highest possible rents to keep public subsidy to a minimum. Objections from councils to the changes have prompted heated discussions between some housing associations and councils over the past few weeks. Read more on Inside Housing.
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