Guinness South, part of the Guinness Partnership which has 60,000 or so social rented properties under management has released a factsheet about affordable rent. Given my repeated attacks on the misnomer that is affordable rent or AR which shows it will cost billions more in HB every year I took a look at this purported sheet of fact
It has a table in it which uses a 2 bed apartment in Welwyn Garden City (coincidentally the constituency of Grant Shapps the Housing Minister) by way of explanation.
It’s says a social rent is typically £105.32 an affordable rent £123.69 and a market rent is £155.00 pw. These figures are utter tosh and market rent is not £155 in WGC for a 2 bed apartment it’s far higher. Have a look on rightmove.co.uk for example and you see a range of prices from £725pcm (£167pw) to £925pcm or £213.50 pw.
Or take a look at LHA direct and you see that government will pay up to £230.77pw in LHA for such a property. Or is that just a coincidental fact that sees private landlords in the Housing Minister’s constituency able to claim 48% more to the HB bill (£230pw) than the alleged typical rent of £155pw? No wonder Shapps has a highly skewed view of the PRS!!!
Or even read higher up on the Guinness factsheet which says social rent is “Set according to a Government formula, – typically at less than two fifths (40%) of market rent levels (although higher in some areas)” which extrapolates means their £105.32 gives a market rent of £263pw in WGC.
So this factsheet that contains so many errors of fact as to market rent (and just being pedantic here but AR is up to 80% of gross market rent which includes service charges) is there any coincidence in the fact they use the constituency of the Housing Minister Grant Shapps to explain (errantly) AR?
Or is it being used at WGC has the lowest percentage of private tenants claiming HB in the country at just 12% compared to the 32% national average? Yes that’s a coincidence for the Housing Minister too isn’t it?
I can’t for the life of me figure out why or how Guinness Partnership have produced this highly errant sheet of fact, never mind want to publicize this on twitter and other social media sites?