A local authority hopes to take advantage of more relaxed finance regulations to break government guidelines for rent rises. Cabinet members in Southampton have agreed that, from April 2013, rents for some homes may rise by up to £2.50 per week on top of any inflation-linked increase so that it can start letting homes in line with a national formula sooner. Councils and housing associations began moving towards a national formula, based on local earnings and property prices, in 2001 so that tenants pay the same ‘target’ rent for similar properties, regardless of their landlord. Originally due to take 10 years, the process will continue until at least 2015/16. But Southampton’s move contravenes guidelines set by Labour in 2001, which state rises needed for rent restructuring must not exceed £2 per week on top of the inflation-linked increase. It will also follow a rent hike averaging 7.5 per cent, or £5.26 a week, from April this year. The council claims larger rises are required to avoid the restructuring process running well into the next decade. Read more on Inside Housing.
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