Haringey Council Implements Rent Hikes for Homeless Accommodation Schemes
Haringey Council has announced significant rent increases for two of its short-term housing schemes that provide accommodation for homeless individuals in the borough. The local authority confirmed that these adjustments are designed to incorporate five years of inflation, resulting in what they describe as "relatively high" increases. Crucially, the government is set to foot the bill for these hikes through housing benefit support.
Details of the Affected Schemes
The two facilities impacted by this decision offer specialist accommodation services for a total of 68 people experiencing homelessness. These schemes provide 36 rooms with shared facilities and have not seen their charges reviewed or updated since they opened in 2020 and 2021. According to a council report, this lack of adjustment has caused the fees to "fall behind" current economic realities.
The decision was formally approved by Councillor Sarah Williams, the cabinet member for housing and planning. The new rent structure will take effect from the next financial year, commencing on April 6, and will apply exclusively to new residents moving into these two schemes.
Financial Implications and Government Support
The council anticipates that the rent increases will generate an additional £190,000 in revenue, assuming all charges will be covered by the government through housing benefit. The report emphasizes 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."
This additional income is expected to contribute to maintaining a balanced budget and enable continued reinvestment into the housing service. The council operates five short-term supported housing schemes in total, with the three unaffected schemes – Olive Morris Court, Carrol Court, and Hale Wharf – providing 32 self-contained properties funded through the housing revenue account.
Protections for Existing Residents
Importantly, the sharp rent increase will not apply to current residents of the two schemes. Instead, existing tenants will see their rents increased by a standardized amount calculated as the Consumer Price Index (CPI) plus 1 percent. The latest Office for National Statistics report showed CPI inflation at 3.2 percent for the 12 months to January this year.
The council has acknowledged there will be a "small impact" on residents through the introduction of personal service charges, which will cost £8.98 per week at one scheme and £13.66 at the other. The authority has committed to providing access to financial assistance for those who struggle to pay these charges and subsequently fall into debt.
Future Outlook and Rationale
Haringey Council explained that while the current increases are substantial due to the need to catch up with five years of inflation, future adjustments are expected to be more moderate and aligned with annual inflation rates. The two affected schemes are funded through the council's general fund, unlike the other three schemes that follow a standard annual rent-setting process through the housing revenue account.
The council's report notes that the addresses of the two affected schemes are not listed in public documents, maintaining privacy for residents. The overall approach aims to ensure the sustainability of homeless accommodation services while minimizing direct financial impact on vulnerable residents through government benefit support systems.
