A New Approach: "People pay the rent their household can afford!"
Brixton Green is proposing a new approach where tenants pay a rent based on a percentage of their household income.
Here's how it works:
All the homes are built to the same standard.
All the tenants have the same rights & quality of service.
People pay a rent based on their household income.
Landlord to be a Community Trust: Locking the commitment to maximise the affordable housing.
Homes that are affordable for all incomes
Example: If two people live together and have a joint income of £32,000 per year, they would pay £750 per month* whether they rented a one, two, three or four bedroom flat. The homes are allocated based on household need.
Further work is being done to decide the rents. The table below is to help illustrate the principle.
*The discounted rents are based on 30% of a household's income.
How much could tenants save on rent?
What if a household's income changes?
If a household's income changes and moves them into a new rent band, they will pay the new rent but do not have to move home.
If the new rent is higher, it will be introduced gradually to allow them to adjust their household finances.
The Trust will calculate a household's income based on their average income over 3 years. Residents will be asked to provide their tax returns as proof of income.
The rules for the income bands
Once a tenant is offered a home, their position in that rent band is reserved:
All households can return to the rent band they first started on.
All households can move to higher rent band if their income increases.
If a household’s income falls below the rent band they started on, they will be given the opportunity to move to a lower rent band if there is availability in that rent band.
If the market rent for a flat falls below the discounted rents, the tenant will pay the lower rent.
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