The vast majority of our existing council homes are rented to council tenants at discounted rents of around 40-45% of market rents, known as ‘social rents’.
Where tenants move out of ageing council homes so that we can re-build higher-quality, more energy-efficient new council homes, they are currently likely to be charged a newer level of rent – discounted to 60% of market rents and capped at a Local Housing Allowance. Tenants in receipt of benefits are likely to have this increase in rent covered by benefits. For the council, this increase in rental income makes a world of difference to our balance sheet as it enables us to cover the costs of building the new homes as well as invest in our existing housing stock.
We also build some homes which are rented to tenants at discounted rents of 80% of market rents. These homes are intended to support local workers who would be unlikely to be granted high priority status to bid for council homes that are available at the two lower levels of rent, but who would still find it difficult to afford the high rents charged in Cambridge – such as nurses and newly qualified teachers.
A strategic partnership with Homes England would mean that 60% of all new council homes would be available at social rent (discounted rents of around 40-45% of market rents), with the remaining 40% of all new council homes likely to be available to tenants at the discounted rent of 80% of market rents.
