Council admits rent rise for homeless housing schemes 'relatively high'

The two facilities provide specialist accommodation services for 68 people experiencing homelessness, reports Joe Ives, Local Democracy Reporter

Rough sleeping in Tottenham High Road (credit Wikicommons)

Haringey Council is increasing fees for two of its short-term housing schemes – with the government set to foot the bill.

The two facilities provide specialist accommodation services for 68 people in the borough experiencing homelessness.

The local authority is the landlord for five short-term supported housing schemes, which provide accommodation for up to two years.

A report ahead of a cabinet member signing today (Monday 23rd) said charges for two of these schemes, which provide 36 rooms with shared facilities, have not been reviewed or updated since they opened in 2020 and 2021 “and so have fallen behind”.

The decision was signed off by councillor Sarah Williams, cabinet member for housing and planning.

It means that from the next financial year, which starts on 6th April, people moving into these two schemes will face increased rent. This is in line with the local authority’s other charges for short-term supported housing provision.

The council says these increases “are effectively incorporating five years inflation and so are relatively high”, and expect future increases to be more in line with annual inflation.

The sharp rent increase will not apply to existing residents, who will have their rents increased by a standardised amount, which is the consumer price index (CPI) plus 1%.

CPI is the rate of inflation in prices of goods and services over time. The latest report by the Office for National Statistics showed an increase of 3.2% in the twelve months to January this year.

The two short-term housing schemes affected by the news are paid for through the local authority’s general fund. Their addresses are not listed in the council’s reports.

Three other short-term supported housing schemes – Olive Morris Court, Carrol Court, and Hale Wharf – provide 32 self-contained properties. These are funded by the council’s housing revenue account, with rents and fees updated annually as part of a standard rent-setting process.

The council’s report says the impact of the rent increases will be significantly mitigated through government support, noting that “residents in these homes are currently receiving full housing benefit and, given the nature of the schemes, it is also likely that this will be the case for future residents”.

As a result, it’s predicted the increased rents will bring in an additional £190,000 for the council – on the assumption that all these charges will be paid for by the government through housing benefit support.

“The increased income contributes to maintaining a balanced budget and enables continued reinvestment into the service,” the council report says.

The local authority admits there will be a “small impact” on residents through the introduction of a personal service charge, which will cost £8.98 per week at one scheme and £13.66 at the other.

In its report the council said it will help provide access to financial assistance for those “who struggle to pay the personal service charge and subsequently fall into debt”.

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