New Era tenants will still see rents more than double – charity my arse!!

All hail Russell Brand and the ‘charitable foundation’ that has bough out the New Era housing from those nasty American capitalists and prevented the poor tenants rent there doubling.  That is the tenor and theme of the Guardian reporting this supposedly good news.  Yet what does it mean once we scratch a tiny bit under the surface?  An all together different story comes to light and NOT one to celebrate!

Below is the Guardian misguided hyperbole on this issue and of course no story would be complete without a picture of Russell Brand with a megaphone

newera

Note the headline – US investors (boo!) had planned to evict (double boo!) and MORE THAN DOUBLE RENTS (Boo Boo and Yogi!)

The article goes on to say existing tenants pay £800 per calendar month for a 2 bed flat there so doubling that rent would be £1600 per calendar month.  Yet we are told that is not going to happen as the evil US capitalists have sold this to a “charitable foundation”  Yay, yay and triple yay….er no!

The Dolphin Square Charitable Foundation deal in affordable (sic) housing not in social housing and what they say on their website is – once you have got past all the privateer speculators on their board that is – that they will keep the rents the same this year BUT then increase these rents to up to 80% of the open market rent.

The open market rents for all areas can be found here and in this case is £2442 per calendar month for a 2 bed flat that New Era tenants now pay £800 pcm.

Lets assume no inflation whatsoever as this £2442 pcm figure is for 2013/14 and that means when the rents increase to 80% of open market rent the £800 pcm now paid will become £1953 pcm or MORE THAN DOUBLE the rents those nasty evil US capitalist former owners were going to charge.

The reality here is the New Era tenants have had a 12 month deferment of an astronomical rent increase which will happen anyway with the new “charity” as many misread this to be.  Worth remembering the biggest charities in the UK in terms of income are the public schools – Yes Eton and Harrow and Roedean are charities.

The meaning of “affordable” is usually the equivalent of rent being 33% or less of net income so if the rent is £1953 then tenants need a net income of £5,859 per month or a net income after tax of £70,308 per year and means a salary of £113,600 is needed to afford this ‘affordable’ (sic) rent level that this ‘charity’ will be charging in the near future.

So that means an MP in Westminster cannot afford this so-called affordable rent flat even with their outrageous 11% wage increase.  Anyone still think this New Era deal is good news?  Anyone still of the opinion we should all go pat Russell Brand on the back?

Nothing against Brand personally just angry that once again the public is being duped by inept press reporting and especially by privateers who wrap themselves up in a charity cloak and of course by the blatant lies this coalition say ‘affordable’ (sic, sic, sic) rent is!

 

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