This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
The first sole Conservative budget in nearly 20 years has been announced today, bringing with it bad news for high-earners living in council properties.
Previously, these tenants have received cheaper, subsidised rents, but changes in the outlined by Chancellor Osborne today will see big earners lose this advantage.
Changes
Under the new legislation, high-earners, those who earn in excess of £40,000 in London, or £30,000 outside of the capital, will lose their benefits and have to pay the total market rent.
This change of ruling, which Mr Osborne anticipates will save the taxpayer £250m per year, is aimed at tenants such as Frank Dobson. Mr Dobson served as a Cabinet Minister under Tony Blair and earned a six-figure salary, but still lives in a council flat in the capital.
High earners to lose subsidies
The move comes on the heels of steps taken over the past five years, which have enabled housing associations to charge full market rents to tenants in receipt of incomes totalling more than £60,000.
Mr Osborne has also declared that the increased rental income that local authorities will receive as a result of the end of taxpayer-funded subsidies will be returned in full to the Treasury. This is turn will be used to reduce national debt.
