Monday, 10 November 2008

Council house 'tenancies for life' likely to be scrapped to ease housing shortage

By DAILY MAIL REPORTER
Last updated at 1:59 PM on 10th November 2008

Council house tenancies for life are likely to be scrapped under radical Government plans to ease the chronic housing shortage.

Tenants would instead be given fixed-term contracts with regular reviews to ensure their circumstances entitle them to subsidised housing, it was reported last night. 

Those whose financial situation improves will be forced to move into the private sector, purchase part-ownership of their home or face higher rents. 

Tenants in council homes will no longer be given 'tenancies for life' in the biggest housing shake-up in decades

Tenants in council homes will no longer be given 'tenancies for life' in the biggest housing shake-up in decades

The right to a council house could also be made conditional on tenants having or actively looking for a job. 

Currently anyone allocated a council home can usually stay in it for life regardless of whether they go on to become wealthy. In some cases families can even leave the tenancy to their children. 

Frank Dobson became a Cabinet Minister while living in a council flat in his London constituency, and Ken Livingstone's controversial aide Lee Jasper was last year reported to be living in social housing despite earning £117,000 per year. 

The measures are being considered by the new Housing Minister Margaret Beckett, her department confirmed. 

It would be the most radical shake-up of the social housing system for decades, as the Government grapples with council house waiting lists of nearly four million people or 1.6 million households. 

With only 170,000 houses becoming available every year, ministers are under heavy pressure to restrict it to the most in need. 

In some poor areas of the county, one in five people is waiting for a council house, and there are fears the housing crisis will worsen as more families become victims of the credit crunch. 

The proposal to introduce fixed-term tenancies of as little as three or four years, was put forward by the Chartered Institute of Housing which represents housing officials. It gained favour under the previous housing minister Caroline Flint, who first floated the idea of removing council housing from people who refuse to look for work.

 

Her removal from the post in last month's reshuffle has delayed publication of the Government's Green Paper on social housing which was expected this month. 

A spokesman for the Department for Communities and Local Government said last night that Margaret Beckett is considering the proposals but is likely to announce a final decision until early next year.

He said: 'As new Housing Minister, Margaret Beckett is currently considering all the evidence and arguments in favour of changes to the current system. However, she has not taken any decisions on measures that may form part of a reform package.

'We expect to signal how we intend to take this forward in the New Year.' 

Changes are likely to affect only new tenants and councils will continue to immediately house people who are homeless or vulnerable such as under-18s and those leaving care or the Armed Forces. 

Ministers are also keen to stamp out claimants who give false evidence of family breakdown to get council houses for their children, The Times reported. 

A spokesman for the CIH told the paper that no-one would be evicted from their homes under its plan, but that they could face higher rents. 

Housing charities have urged ministers to rejecr the proposals, as the credit crunch is likely to see a sharp rise in unemployment and repossessions. 

Adam Sampson, chief executive of Shelter, called the plans 'perverse'.

He said: 'While better services and independent advice about their options could help improve some tenants’ circumstances, threatening rent increases will create more problems than it will solve.'

 

Here's what readers have had to say so far. Why not add your thoughts below?

    

Good. 

If tenants can afford new cars, widescreen tv's and sky subscriptions they can afford to rent in the private sector. 

The Gov't also needs to remove Council House eligiblilty from immigrants until they have contributed at least five years tax and NI contributions.

- Egbert Nobacon, Essex, UK, 10/11/2008 09:28

    

YES ABOUT BLOODY TIME. 

I know people who got council housing while in need, and spend the rest of their LIVES getting subsidised rents, at 330 a month, while my family who earn the same as them now because their circumstances got much better have to rent privately have to pay 900 a month for the SAME SIZED HOUSE. 

Those in need fear not. YOu are rightfully protected. But I'll tell you this now. This won't kick people out of thier homes. The tenants WILL QUIT their jobs and lower their incomes before they lose their homes. So in reality this will change not much.

- Frank, Crawley, UK, 10/11/2008 09:27

    

Another change that will remove a privilege the old have had and thus deny it to the young!

- John, Stafford, 10/11/2008 09:22