Nurses and teachers living in ‘affordable’ housing scheme face 20% rent rise

ing their children’s schooling. Louise O’Mahony, 41, a primary school teacher, said the sudden rise was “extremely unfair”. She said: “This has left myself and my fellow tenants extremely panicked. There are simply no cheaper options available within Southwark or indeed any London borough — people are just getting priced out. To suddenly put up the rent like this and say, ‘Pay up or leave’ is not very moral when you have a scheme that is supposed to be about affordable housing.

“A large number of residents also have young families and this increase has made them feel extremely vulner- able and fearful of being made homeless.” The tenancies are based on a Intermediate Rent Scheme, which is supposed to be between 20 to 30 per cent lower than local market rates. However, landlords L&Q gave notice this month that tenants must agree to the 20 per cent increase or find alternative homes within two months.

Previously, tenants have faced rises of six or seven per cent a year, but L&Q sources said the 20 per cent increase was because of a historical “error” in determining rent levels. This led to re sidents effec tively paying rents 40 per cent lower than market rates, instead of the 20 per cent the scheme was designed for.

A spokesman confirmed that automatic rate rises had been previously linked to the Retail Price Index, which had gone up slower than market rents. He said that following a “review of the figures”, the way rents were calculated was being corrected.

He added: “We apologise to those residents who have seen an unexpected increase in the rent for their new tenancy agreements. While many residents have renewed their tenancies with us without issue, we do under- stand that this may prove more difficult to manage for others. We will do everything we can to help those affected and if necessary will assist in finding cheaper IMR rents available elsewhere, if available.” He added that all IMR tenancy agreements would undergo an annual market rate review.

Ms O’Mahony described the rise as “ruthless”. She said: “To suddenly lump this massive increase on people who don’t have much money is just not reasonable.

“A large number of tenants are key workers in education, the NHS, transport, the local authority — we have also been facing pay freezes for years whilst the cost of living continually increases, so trying to find a spare £150, or more, a month is frankly impossible. It just feels like living in London is not viable any more.”