Major Flaws Revealed In Pay-To-Stay Policy

The government’s pay-to-stay policy will not work in parts of 16 local authority areas across London because tenants will have to earn more than the £60,000 cap to be able to pay affordable rents.  Under pay-to-stay proposals outlined last month, social landlords will be able to force tenants who have a household income of more than £60,000 a year to pay full market rent or move into the private rented sector.  However, exclusive data from consultancy Hometrack reveals that in four boroughs this will not be possible for tenants paying affordable rents.  This is because tenants would need an income of up to £82,226 to pay the rent even if it is set at 63 per cent of the market rate - the average proportion charged under the scheme - rather than the 80 per cent maximum allowed. Read more on Inside Housing.