Islington Council says it remains determined to fight for lower rents in new affordable housing despite a High Court judgement dismissing the cross-borough attempt to block Boris Johnson’s plan to allow affordable rents to be set up to 80 per cent of the market rate.
Islington is one of nine boroughs that argue the council should be allowed to set lower rent limits in new affordable housing to ensure rent prices remain affordable for local people.
Currently, social rents are usually set at around 30-40 percent of the market level.
The Honourable Mrs Justice Lang DBE ruled that the mayor had acted within his power and that his plan leaves it open to boroughs to fight for lower rents on individual developments.
James Murray, executive member for housing and development for Islington Council, which led the legal challenge on behalf of the boroughs, said: “Unless we fight for lower rents, the Mayor’s higher rents will price many local people, especially families on low and medium incomes and vulnerable people, out of large areas of London. The Mayor’s higher rents are totally wrong for our city.”
The councils have 21 days to decide whether they will appeal the decision.
