The housing minister has warned that housing associations should not use regeneration activities as an excuse for higher rents - while reassuring those who fear the dire financial consequences of rent reform.
Associations should encourage tenants to lobby for improvements to mainstream services rather than trying to bridge the gap themselves, Nick Raynsford said in a speech to the National Housing Federation's annual conference in Birmingham yesterday.

Raynsford issued a stern reminder to associations of their primary purpose - to supply and manage social housing. This should inform how far they use their finances to contribute to the wider renewal agenda, he said.

He told delegates: "As providers of social housing it appears perverse that additional rent charges are being used to make good failings in main services."

Raynsford said he recognised concerns about government plans for rent restructuring, but stressed these came from councils worried about increases, as well as associations concerned about cuts.

But he offered "a clear note of comfort" to associations fearing for their financial viability: "The Green Paper says clearly several times that RSLs must be able to set rents at a level that allows them to meet their financial commitments to maintain their stock and to continue to function as financially viable organisations. This will be a material consideration as we look at the consultation responses."

The government intends to work with black and minority ethnic associations and co-ops to ensure that the rent restructuring proposals do not undermine their valuable role, he stressed.

But there would be no turning back over the fundamentals of the Green Paper. Well over half of its proposals do not require legislation, "and we shall be pressing ahead on these aspects as quickly as possible" he said.

Source

Housing Today