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.'