Red Kite Housing Association is likely to be hit next year by a triple whammy:
- Government instructions to reduce rents by 1% each year for 4 years
- Government proposals to give tenants in Housing Associations the right to buy and
- Government proposals to triple the rent for households with incomes over £30,000.
It may be hit by a further blow if the Government goes ahead with cuts to tax credits and tenants find themselves struggling even more to pay the rent.
Red Kite recognises these hits as “strategic risks”. However there is no information on the impact of this triple whammy on Red Kite’s income stream and no information about its financial projections.
Wycombe Labour has therefore made its own assessment – and begs to be corrected.
Derek Berry, Wycombe Labour’s spokesperson for housing said “We estimate Red Kite could lose £8 million in income from the cut in rents over the next 4 years.
We know Red Kite is fighting the Government’s proposals to give housing association tenants the right to buy. The cost of this will fall on Red Kite as loss of revenue and on WDC who will have to make up the difference between the price Red Kite gets from its tenants and the market price.
We estimate that many tenants will find it more and more difficult to pay their rent as cuts and delays to benefits, including tax credits, get worse.
We estimate that the proposals to triple the rent for households with an income of more than £30,000 will hit disabled people again; their care packages may well tip the household income over the £30,000 threshold.
We foresee that one of the casualties of this triple whammy will be the Castlefield re-development. This is already late and millions of pounds over budget. The re-development should be completed by the end of next year. But Red Kite hasn’t even got the planning application in.
Housing associations play a vital role in providing decent and affordable housing for a whole range of our citizens. The Tory Government attacks on housing associations and their tenants will do nothing to assist Red Kite's ability to address the housing crisis in High Wycombe”