The Comprehensive Spending Review will have a significant impact on affordable housing in London. The overall national housing budget has been cut from £8bn to £4.4bn and new tenancies are to be set at 80% of market rents.
Green Party Member of the London Assembly, Jenny Jones said:
"This could be the end of affordable housing in central London where market rents are very high. Rent rises will only increase the housing benefit bill, which pays for the failure to build low-rent social housing. The whole thing seems unworkable. For example, the Mayor may be unable to provide any new social rented homes in central London where the 80% market rate will fall foul of the housing benefit cap."
"Increased rent costs and an increased reliance on private rented sector to meet the continued shortfall in social housing are likely to lead to greater claim on housing benefit."