High earners could be banned from renting council houses
- Oops!Something went wrong.Please try again later.
People with high incomes would be banned from renting council houses under proposals by Michael Gove to ensure that homes go to those in the greatest financial need.
Mr Gove, the Housing Secretary, is consulting on a law that will impose a nationwide salary threshold for new social housing tenants, meaning they would not be able to take up homes for which poorer people are waiting.
The latest figures show that 186,000 social households have an income exceeding £50,000 – 4.6 per cent of the total – despite there being long waiting lists among people in much greater need.
It has not yet been decided what the level of the income test would be, although it would cover the salaries of both partners.
Mr Gove’s new powers would not affect existing tenants on high salaries, and people would not be evicted if they received a pay rise that took them above the threshold, because that would penalise people “for improving their lot in life”.
In addition, he wants those who commit anti-social behaviour to face a ban of up to five years under the proposals.
People with the closest connections to the UK and their local areas would be able to jump the housing queue as part of a “British homes for British workers” policy. Under the new rules, people would have to show a link with Britain lasting a decade and a two-year link with the local area.
‘Not going to be a soft touch’
Lee Rowley, the housing minister, said the Government was determined to crack down on people who “abuse the system”.
“Today we are proposing further steps to make the allocation of social housing fairer for people,” he said. “If you abuse the system, making peoples’ lives a misery or actively work against our British values, you are making a choice – such choices will have consequences and our proposals seek to stop such people getting a social home.
“The message is clear: play by the rules, pay in and we will support you. If you choose not to, this country is not going to be a soft touch.”
For years, there has been anger for years at wealthy people taking up council housing when there is such a long waiting list.
Apsana Begum, a Labour MP, lives in a riverside council flat in the London borough of Tower Hamlets, even though she takes home a salary of £86,584.
Some councils have set their own income cap for social housing, but in Tower Hamlets it is as high as £90,000. Around 23,000 households are on the social housing waiting list in the deprived East End borough, facing waits of up to six years.
‘Vast majority of social housing lettings to UK nationals’
At present, individual councils can impose their own income tests, but not all do. A national requirement would “ensure fairness and consistency”, the Government’s consultation document said.
While it would not set an income test until after the consultation, it noted that 80 per cent of households new to the social housing sector were on below £30,000. Almost 2,000 people with household incomes in excess of £40,000 were given homes in 2021/22.
Some councils may be able to set their own lower thresholds, based on local circumstances, under the plans. The income test would not be applied to those in receipt of Universal Credit, those who need supported housing, or members and veterans of the UK Armed Forces.
Darren Rodwell, the housing spokesman for the Local Government Association, said: “The vast majority of social housing lettings go to UK nationals, and many councils already have policies relating to anti-social behaviour, criminal behaviour, rent arrears and income thresholds in their allocation policies.
“The LGA has raised concerns that restricting eligibility criteria for social housing and extending qualification periods could result in a rise in homelessness.”
