Hackney Council has joined forces with seven other councils in London to take action against the Greater London Authority (GLA) over rent levels.
Conservative Mayor of London, Boris Johnson has banned councils such as Hackney from capping rents on new homes being built with public money.
This means that new Government funded homes will have their rents set at up to 80% of market rates – the Government’s definition of ‘affordable rent’.
In Hackney, market rents are very high, and the ‘affordable rent’ level is simply out of reach for many people on low incomes. Most housing associations and councils charge social rents, which are less than half of market rent levels.
Jules Pipe, Mayor of Hackney said ‘This is about making sure that local people can actually afford to live in taxpayer funded homes built in Hackney in the future’.