new Manchester Living Rent has been launched as a way to increase the homes that all Manchester people can afford.
The Manchester Living Rent (MLR) is a rent level that people on housing benefit can access, meaning new housing – regardless of where it is built – will be affordable to anyone in the city.
Manchester is a growing city and the population is increasing and diversifying quickly. This means more houses of all types need to be built in every part of Manchester. To ensure that everyone in the city can thrive and to make Manchester truly a place that everyone can enjoy, there needs to be a specific focus on making sure there are homes that everyone can afford.
The Manchester Living Rent will be set at or below Local Housing Allowance (LHA) level.
The LHA is the rent level set by Government that will cover a person’s rent if they are on housing benefit.
The Manchester Living Rent is also cheaper to residents than the standard Government definition of Affordable Housing – or 80% of market value for a particular area.
By pricing new homes at this rent level, the Council can ensure that new housing can be accessed by as many people as possible – particularly those households on lower incomes.
The Council’s home building company, This City has already made a commitment that at least 20% of all the homes built by the company will be set at the Manchester Living Rent. And most Registered Providers and Housing Associations already cap their affordable homes at the Manchester Living Rent to ensure people on housing benefit can access their properties.
However, the ambition is that all Registered Providers and Housing Associations sign up to the Manchester Living Rent movement, as well as developers making a commitment to the Manchester Living Rent to improve access to affordable housing for Manchester residents.
Cllr Bev Craig, Leader of Manchester City Council, said:
“Manchester people need good quality, secure housing to prosper and lead happy and healthy lives. Manchester is a growing, exciting and thriving city – a city where we want everyone to benefit from its growth and success. Making sure we have the right kinds and supply of housing is vital to a successful city, including low cost options.
“I grew up in Council housing, my family still rely on it. I know first-hand the security that affordable housing can bring. This is something we care deeply about and something we are committed to improving in the city.
“We should and will do anything in our gift to bring homes to Manchester people that they need – and in places they want to live.
“The Manchester Living Rent is important in that it creates a level playing field when it comes to housing affordability. It means that regardless of where the home is in the city, it can be affordable to anybody. It’s a clear and straightforward way of describing what we mean- low cost homes that people on a minimum wage can afford.
“The Manchester living Rent is just the start. We are launching our new Housing Strategy with ambitious plans for the city and building homes at the Manchester Living Rent level is a key part of this.”
