Wealthy Council Tenants Could Lose Homes

Council house tenants who earn more than £100,000 could be evicted under plans being considered by the Government.

At the moment, residents are given a "secure tenancy" which means they will only lose their home if they fail to pay rent or are evicted by a court.

Under the new proposals, local authorities could be given new powers to force out wealthier residents in an attempt to reduce waiting lists and ensure people get the homes they need.

Housing minister Grant Shapps told Sky News: "It's a no-brainer argument and I think the general public will be supportive.

"We spend billions building the homes and billions subsidising them, they should go to the right sort of people.

"It's a basic unfairness."

He also said wealthy tenants could be offered the chance to pay the market rate of rent, rather than the subsidised council rate, and stay in their home.

Ministers believe 6,000 of the approximately eight million people who live in social or council housing could be earning six-figure sums.

This may include individuals such as RMT union boss Bob Crow, who is reportedly paid more than £100,000 but still lives in a council property.

Prime Minister David Cameron suggested he was in favour of ending the principle of "homes for life" last year but warned: "Not everyone will support this and there will be quite a big argument."

A move of this kind would be designed to appeal to squeezed taxpayers who feel they are subsidising people who do not deserve it.

But criticisms of the proposal are likely to include fears it will be costly and complicated to implement, may cause thousands of residents anxiety and could act as a disincentive as people might worry a bigger salary or better job will lead them to lose their home.

If the law is changed, local authorities and housing association landlords may have to administer the plan and check who is too wealthy to keep their council property.

They may be given strict rules for how to assess income, but there could be claims of a "postcode lottery" if each area is able to set its own guidelines.

Social housing rents tend to be substantially lower than private sector prices.

The taxpayer subsidy on a four-bedroom property in London could be as much as £70,000 a year.