Tenants: expect large rent increases soon. Please join us to protect yourselves, and campaign against unfair housing costs.
In five months time (April 2020) NHG will unleash Government-sanctioned rent increases against ‘assured tenants’ (the majority of NHG’s tenants).
NHG tenants are already suffering the effects of wage stagnation and zero hour contracts since the 2008 crisis.
But NHG will hike our rents up at Consumer Price Index (inflation) plus 1% over a five-year period (2020 to 2025).
Why is this aggressive, and wrong?
This policy steals money from tenants. NHG says it uses our increased rents to pay back its debts to financial markets to expand, and build ‘more homes’ – meaning ‘out-of-reach homes.’
This policy has been totally discredited over the last few years, but it is even more foolish than ever right now. Why? Because NHG can’t sell its expensive new homes anyway, due to the downturn in the housing market.
So – they don’t need to build more. And don’t need to raise the rents!
They can’t even sell what they are building..
In the latest Annual Financial Report NHG’s chair, James Wardlaw is clear:
“[We] have experienced a rise in the number of unsold homes. Consequently, in late 2018 we decided to slow down the pace of our development activity.”
In July, the Regulator of Social Housing reviewed NHG. It stated that:
“Reflecting changing market conditions, NHG has reduced its development plans. It originally intended to increase its development programme to 2,700 homes a year, but now intends to scale that number back significantly.’
So the question is: why is NHG intending to attack large number of assured tenants – who are already struggling with the difficult economic situation – for no reason at all?