council management and maintenance allowances will rise by 6% on average between 2004 and 2006 – but this may not be enough to stave off steeper rent rises.
The government said the increases work out as an extra £127 per home in 2004/05 and £141 more in 2005/06. It said the increases will be on top of the increases for 2003 announced last month and will take account of the effect of rent restructuring on subsidy.

But consultant Richard Bramley warned that the increases could herald steeper rent rises. He said restructuring had achieved only a 1% convergence between council and housing association rents in two years. To bridge an estimated 18% gap over 10 years, council rents will have to rise faster in the years to 2010. Bramley said: "The rent increases currently won't achieve the government's objective of convergence.

"The extra for management and maintenance may have to come from rents going up faster."

n Methods for allocating management and maintenance allowances could change. The government has asked the Building Research Establishment to review the factors used in deciding allocations. It will report next year.

Source

Housing Today