- London Residents Earning £30,000 Excluded from Affordable Rent Schemes
- Minimum Income Requirements Vary Widely Among Landlords
- Renters With Lower Incomes Screened Out of Affordable Housing Programs
London residents earning more than £30,000 are told they do not earn enough to qualify for so-called affordable rent schemes.
Under the terms of the agreements, low-income renters should be able to secure housing at prices below the market rate.
However, some landlords require applicants to earn between £35,000 and £60,000 to be considered.
MPs assert that the regulator must investigate how tenants are selected.
The expression “affordable housing” encompasses a variety of rental and purchase programs, each with its own eligibility requirements and application process.
According to the UK government’s housing department, affordable rent schemes were introduced for individuals with “limited incomes” in 2011. Rates are set at least 20% below the local market value. As long as they are a “registered provider” of social housing, councils, housing associations, and private companies can all offer affordable rents.
However, many landlords do not disclose the minimum income they require applicants to have to qualify.
The BBC discovered that 28 of forty advertisements for affordable housing to rent in London did not specify a minimum income requirement.
Eleven of the companies that did list minimum income requirements required between £30,000 and £60,000. The only exception was £27,750.
The median annual income in the capital is £36,749, according to data from the Office for National Statistics.
People with lower incomes are “effectively being screened out” by housing providers for the benefit of those with higher incomes who are deemed less likely to miss monthly rent payments.
As a result of government cutbacks to affordable housing funding, providers must be “extremely focused on their bottom line,” according to Charlie Trew, the charity’s director of policy.
We also inquired as to whether renters with lesser incomes were “screened out.”
A spokesperson also stated in a statement, “Affordable housing is for those with limited incomes, and offers must reflect this.”
They noted that “misleading tenants with inaccurate advertising” was “completely unacceptable”
These listings were found on the websites of housing providers, property search sites, and the Homes for Londoners website of the London mayor.
Sam’s annual income is approximately £33,000.
Sam, age 26, pays £925 per month to privately rent a room in an east London two-bedroom flat.
He had hoped to purchase a home and had saved £15,000 for a down payment.
He jumped at the opportunity to register for a rental apartment in an affordable housing program – a so-called London Living Rent property for people who wish to save for a deposit over the long term.
The advertisement he saw stated a maximum salary of £60,000, but he claims it did not specify a minimum.
During the application process, he requested a transition to a different flat in a different L&Q-managed development.
The rent for the second property, located in Newham, was comparable to that of a single room. In addition, it provided the security of a three-year lease and the option to purchase if he so desired.
But he was unable to participate due to his “low income.” L&Q informed Sam that he must have a minimum income of £36,000.
Sam, who works in the science department of a university, says, “It makes me feel quite hopeless.”
He claims to be caught in a paradox. He does not qualify for social rent (council housing) and does not earn enough to qualify for affordable rental programs.
“I feel like I’m within this invisible range.”
After asking the housing association for more information, he realised that his resources would prevent him from renting the property.
Sam says being told he doesn’t make enough yet has too much was confusing.
Sam’s application for a London Living Rent property is partially funded by the Mayor of London’s office.
According to the mayor’s website, Living Rent properties are “truly affordable.”
A spokesperson for the mayor’s office stated that it “encourages all housing providers to be clear and transparent” when allocating properties to tenants.
Sam has abandoned his aspirations to rent through affordable housing programmes and become a landlord.
He has decided to remain in his accommodation. His landlord increased his rent.
Sam’s Tale was submitted to L&Q. John Lumley, the company’s director of strategic sales, stated, “Demand for these schemes is extremely high, and our processes are designed to ensure that we match customers with the ideal home for them.”
In addition, eligibility information is available on L&Q’s website, and the company’s advisors “work with prospective customers to help them make an informed decision about applying for these schemes or, where applicable, other options.”
The housing association apologized if any clients “have not had a positive experience” and stated that it welcomes feedback at all times.
