A survey commissioned by the National Housing Federation found that 69% of tenants would rather forego the Government's proposed rent cut for 2010/11 of around 0.9% than suffer cuts to community services.
Under the Government's proposals, housing association tenants would be given a small rent cut to reflect the current bout of deflation. However, the Federation says that even a small rent cut would reduce income for social housing providers by millions of pounds. Associations may look to make up the lost income through cuts - in community services, job training schemes, business start-up initiatives, energy efficiency programmes, recycling projects, IT classes, etc.
Despite the fact that housing association-funded neighbourhood services benefit millions of people in some of the most deprived areas in the country, they are classed as a 'non essential service' under law and are among the few areas in which housing associations could cut costs.
Housing associations invest £272 million a year on providing a huge range of community services and attract a further £163 million from other sources to fund the work.
Social housing rents have never been cut before, even during the two world wars and the Great Depression, and the Federation has called for a rent freeze next year to protect the interests of tenants and prevent services being cut. According to the survey the Federation has the backing of tenants for the proposal.
Federation chief executive David Orr said:
"Faced with a shortfall of millions of pounds in their income, housing associations could be forced into cutting back dramatically on the key services tenants really value - such as antisocial behaviour programmes, job training schemes and education programmes.
"The Government wants housing associations to deliver more new homes and more community services during the recession - and our sector is ready to meet that challenge.
"But faced with a cut in their incomes next year, housing associations may be forced into cutting rather than expanding the services they offer - and thousands of services could be at risk of cutbacks.
"The fact that nearly 70% of tenants would rather forego a cut in their rents in order to protect these services shows just how vitally important they are."
The poll was conducted with 300 housing association tenants between 15-22 September.