Council Reveals Private Rent Plan

A London council has asked the government for permission to rent its empty social homes at market rates.  Conservative-led Hammersmith & Fulham (H&F) Council said that allowing local authorities ‘the same freedom as housing associations’ to let void or new build properties on the private market could help generate income to reinvest in new affordable housing.  Andrew Johnson, cabinet member for housing at Hammersmith & Fulham, said the council envisaged offering no more than 50 out of the 500 homes that become void every year at market rent, which could be up to three times the current rate.  Mr Johnson added the council was considering the idea in response to the self-financing reform of the housing revenue account under which the west London authority took on £218 million of debt, leaving it with annual interest payments of £12 million. It has just £33 million of ‘borrowing headroom’ beyond its HRA debt.  Read more on the H&F website.