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Affordability: a step forward: establishing principles for rent setting

Ellis, Kathy and Whitehead, Christine M E (2015) Affordability: a step forward: establishing principles for rent setting. . Affinity Sutton, London, UK.

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Abstract

Affinity Sutton is a national Housing Association and as a business for social purpose it wants to ensure that Affordable Rents are set in a way that is genuinely affordable to low income households whilst continuing to build new and maintain existing homes. This research was set up to consider what the principles of setting a rent policy should be and what their new Affordable Rent policy might look like. The lessons learned here and the principles of rent setting identified will be equally relevant to other developing Housing Associations although not all will be able to maintain development capacity at the same time as reducing rents to affordable levels. We know that affordability is complex – it depends on incomes, rents, household composition, geography and benefits – as well as on how we define it. As Figure 1 shows, housing affordability has worsened for renters since we last looked at it in 2011 and more working households are dependent on housing benefits to pay their housing costs. Rents have risen faster than incomes so the affordability of any given proportion of market rent has fallen; but Affordable Rents set as a proportion of these higher market rents also raise more revenue. For Housing Associations there is a tension between putting resources towards housebuilding and holding down rents, as shown in Figure 2. The challenge of this trade off will need to be addressed by different organisations in the context of their charitable mission, vision and values.

Item Type: Monograph (Report)
Official URL: http://www.affinitysutton.com/
Additional Information: © 2015 Affinity Sutton
Divisions: LSE London
Subjects: H Social Sciences > HT Communities. Classes. Races
Sets: Research centres and groups > LSE London Centre for Urban and Metropolitan Research
Date Deposited: 04 Sep 2015 14:51
Last Modified: 04 Sep 2019 23:12
URI: http://eprints.lse.ac.uk/id/eprint/63398

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