Posted 19.09.2012
In its response to the DCLG's "Pay to Stay" consultation, the Association of Retained Council Housing (ARCH) has taken the view that central government should no longer be trying to tell councils what their rents policies should be.
It argues that, with the end of the HRA subsidy system the Government no longer has a financial interest in local rents, except in so far as Housing Benefit spending is affected. If localism means anything, it means that rents should now be a matter for local choice.
It is clear that some ARCH members, given the opportunity, would choose to charge high-income tenants more. Others would not, either because they disagree in principle, or because they think the benefits of a pay-to-stay scheme would be outweighed by the costs of administering it. ARCH believes that, on this matter, councils should be free to do as they see fit.
The consultation response further comments - "from this perspective, the Government should not tell councils what rents they should charge, nor does it need to get involved in developing guidance for those councils that wish to operate pay-to-stay schemes. That role could equally well be played by the sector and its professional and representative organisations.
Where the Government should focus its attention is on matters only it can resolve, in this case, legislation to give councils the powers to collect information on income, so they can operate a pay-to-stay scheme should they wish."
Information Notes
The proposed "Pay to Stay" rules would mean tenants with a household income of more than a set level would see their rent increase. The consultation proposes a threshold of between £60,000 and £100,000, with rents raised to 80% of market level, or full market rent.
ARCH is an association of councils in England who have retained ownership and management of their council homes. It aims to get the best deal for councils and their tenants. About 100 local authorities still own and manage around 800,000 homes.
