Discussion at Labour conference raises idea of ‘escalator’ for social rents

There is a ‘debate to be had’ about social housing rents fluctuating with the incomes of tenants, leader of Greenwich council has said as he made a case for rent formula reform.

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Anthony Okereke (left), speaking at a fringe session of the Labour party conference today

At a fringe event on solving the temporary accommodation crisis at Labour conference in Liverpool this week, an audience questioner asked whether there should be an “escalator” for rents, so that “those with broader shoulders to take on more responsibility as they have social mobility and earn more money”.

Anthony Okereke, leader of the Royal Borough of Greenwich, responded by pointing out that the rent formula for council homes “hasn’t been touched” for decades.

“We do need to look at the formula,” he said. “Some registered providers at the moment are looking at flexi rents, which increase in time if you’re in there and your income changes.

“I think there’s a debate to be had about this because obviously there’s a resourcing implication for doing stuff like that.”

Addressing the same question, Rachel Blake, MP for the Cities of London and Westminster, said she did not think it was “fair on anybody to start tweaking” in the way the questioner suggested.

The discussion also addressed the need for London councils to stop competing with one another in acquisitions and allocations.

“There is a geography challenge in that we are all competing across each other, all trying to buy lots of homes,” said Okereke.

“In the middle there is a developer and we’re playing ourselves against each other – that is quite challenging”.

On the same issue, Blake said she would “wholeheartedly endorse this being part of a new devolution approach for London”, describing inter-councils competition in procuring temporary accommodation was “so unhelpful and toxic”.

On allocations, Okereke said that out-of-London placements were inevitable but that work was needed to make sure the process is effective.

“We’re planning to do a review on this at London Councils on how it works, using all housing directors coming together to talk about it, whilst working with other councils outside of London to do this,” he said.

“There’s a pilot scheme that we’re going to be doing very very soon.”