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USE COUNCIL HOUSING PROFITS TO PAY FOR NEW HOMES - AMA

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Profits from council housing should be used to help pay for new homes for homeless people, says the AMA. 50,000 new...
Profits from council housing should be used to help pay for new homes for homeless people, says the AMA. 50,000 new homes a year are needed and income from council rents could pay for up to 20,000 of them.

The AMA's Housing Committee heard today that the government is insisting council rents are increased by 5% ahead of inflation each year until 196/97.

This would generate a £1000m 'profit' over the period. The government is insisting that this 'profit' is used to help pay housing benefit costs. By 1996/97 it expects 27% of rent rebate costs to be met from other tenants' rents.

Margaret Moran, chair of the AMA housing committee, says: 'council housing is no longer subsidised housing. It is totally unjustifiable to force rents to go on rising just to reduce the government's housing benefit bills.'

The AMA housing committee agreed that rents should not increase faster than inflation. Where profits are generated the money should be ploughed back into housing investment to improve existing council homes and provide additional homes for homeless people.
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