Rents through the roof

Osborne’s plans to raise council tenants’ rent to market value if their income is more than £30,000 or £40,000 in London could force hundreds of hardworking families out from London.

Public sector workers in London will be hit hard – especially in households where both income earners work in the public sector and could both potentially earn £30,000 or more.

With often astronomical house prices, market value in London is not affordable on an income of less than ÂŁ80,000. Their choices are bleak. Thousands of families could find themselves faced with having to relocate and then possibly unable to afford the commute to work.

Forcing these professionals out of London could leave the Capital in a severe shortage of qualified, skilled workers to do vital roles, believes Unite.

“London’s hospitals, community services and ambulance service struggle to recruit,” says Barrie Brown, Unite head of health.

Further pressures

“The proposals to force health professionals to pay vastly increased rents for their council accommodation will create further pressures on the NHS if staff in council properties have no choice but to move and work outside London,” added Barrie.

I spoke to Mark, a 50 year old father and step dad lives in a small village just outside Woking in Surrey.

He told UNITElive how a ‘pay to stay’ policy would affect his family.

“If Osborne’s plans go ahead we will see our rent quadruple. Market rent for us means my entire salary will be eaten up,” said Mark.

Mark’s partner, Claire, who suffers from depression herself, is a full-time carer to her ten year-old daughter, who has quadriplegic cerebral palsy.

“Our house has been adapted to accommodate Katie’s disabilities. The doors have been widened for her wheelchair, we have a lift to allow her access to the upstairs and there are hoists to lift her and a wet room,” he added.

Mark and Claire have already discussed what will happen if Osborne’s plans go-ahead.

“I think we would be forced to split the family and I would have to move out, probably into a bedsit nearby,” he said.

Although he would be able to stay a limited number of nights Mark worries what affect this could have on Claire’s depression.

No respite

“If Claire was on her own she would have no respite at all. Being a full-time carer is not only incredibly hard work it is relentless and lonely. Without someone there to support you and help out with the added household chores it is just too much for one person,” added Mark.

The couple have looked at their options including a mortgage but because of Mark’s age it would mean taking it over a short term making repayments as high as market value rent.

“I can’t begin to tell you how stressful and upsetting it is having this hanging over you when you’re just trying to do right by your family and earn a decent living,” Mark said.

The couple are also opposed to the-right-to-buy scheme believing that council properties should remain in the council’s possession and not sold off as personal assets.

Ghettos

“This government just wants to destroy council housing. There was a time when we had mixed estates everywhere with doctors living next-door to window cleaners.

“What the Tories are doing is creating ghettos where only the very poor can have a council house and they’re isolated from anyone else and prevented from mixing with the rest of society.”

‘Pay to stay’ could affect more than 340,000 council tenants in a drive to cut what Tories call ‘taxpayer-funded rent subsidies’.

The squeeze on ordinary hard-working families was announced in the same budget where Osborne declared plans to cut inheritance tax for rich families.

Labour London Mayoral candidate Sadiq Khan, who was born and raised on a council estate, has a focus on housing and plans to crack London’s housing crisis.

“I believe in supporting people who work hard and get on. Simply raising rents for some won’t solve our housing crisis – the real solution is to build more affordable homes,” said Sadiq.

He told UNITElive before how unjust he finds the uncertainty and fear that many people are living with day in day out and that housing is the single biggest issue that this generation must address.

“I will make a difference as Mayor, by insisting that all new developments have 50 per cent affordable homes and I will introduce a London Living Rent, about a third of average local salaries, so people can afford to live in London and get on,” he added.

*Names changed to protect members