Properties set to become more affordable in Southwark

Southwark Council has launched a new drive to boost the affordability of homes in the borough.

It revealed that council rents will be kept below £100 a week for some of the borough's poorest residents.

Despite the government recommending that rent increases should be around 5.4 per cent, Southwark Council has halved the increase to 2.7 per cent.

It revealed that over the past four years, it made efficiency savings of £27.5 million in its housing revenue account which enables the budget to absorb the impact of the lower rent increase without affecting service delivery.

Commenting on the findings, councillor Richard Livingstone, cabinet member for housing, said: "London is a tough place to find affordable housing right now, but we're leading the way in showing that it can be done - we can and will supply genuinely affordable homes and we can take decisions to keep rent as low as possible for those most in need in our council homes.

"I would hope that other councils across the country can see that the example we set makes it possible for people to afford to live anywhere they wish, near their families and friends, even in places considered 'unaffordable'."

In addition, the local authority announced that it will support those most in need of help with paying rent by keeping future social rent increases to the Consumer Price Index (CPI) plus one per cent over the next four years. 

This means that for those on the lowest incomes, rent will be much more affordable. The borough has been ranked eleventh cheapest rent in London of 33 boroughs for social rent.

The council has also announced plans to build 11,000 new council homes, at target rent, over the next 30 years.

Published 18th August, 2014

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