Council tenant rent reduction

Croydon's tenants will be paying reduced rents from August after the government caved in to council pressure to change its rent-setting regime.

Council tenants had faced an average rent rise of 6.1 per cent next year but after extensive lobbying from local authorities and residents? associations the government has now agreed to support a lower rent increase.

This means the average rent rise will be cut by 4.3 per cent, with the new rents coming into effect on August 3.

Councillor Dudley Mead, deputy leader and cabinet member for housing, said: "We are delighted, having put pressure on the government, it has had a change of heart and we will now be able to reduce tenants' rents, particularly as many are facing financial pressure at this time.

"We have said all along that the original rent rises were not appropriate but our hands were tied by the government's inflexible rent-setting regime. Fortunately our concerns have been listened to and the government has reduced the amount of subsidy this borough needs to pay out to support underachieving housing authorities this year. We can now pass the benefits on to our tenants. We will continue to battle away for lower increases next year and in the years to follow."