Hackney Council and eight other local authorities are at the High Court today to challenge the Mayor of London’s bid to increase the rates of ‘affordable rents’.
Under the changes announced by Boris Johnson, new ‘affordable’ homes could charge rents of up to 80 per cent of the market rate.
Hackney has teamed up with Brent, Camden, Enfield, Greenwich, Lambeth, Southwark, Islington and Tower Hamlets to halt Revised Early Minor Alterations (REMA) proposals which are part of the London Plan.
The boroughs will argue that the new rents will be unaffordable for many local people and the Mayor of London was wrong to treat London as a single housing market, when there are in fact many different housing markets across the city.
The Mayor’s plans runs contrary to the advice of an independent Government-appointed Planning Inspector, who recommended that boroughs should keep their powers to set rents in new affordable housing.
Existing council tenancies and the majority of housing association tenancies will be unaffected.
The case will be heard by the High Court over two days.
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