Tenants fought back against huge rent hikes that were ‘forcing them out’
The Welsh Streets in Toxteth (Image: Andrew Teebay Liverpool Echo)
A cap on rent increases for residents in a famous set of Liverpool streets has been heralded as a huge win for those living there.
The ECHO has reported extensively on the plight of those living in the Welsh Streets in Liverpool, the famous Toxteth area where Beatle Ringo Starr grew up.
The properties were saved from demolition and refurbished by Placefirst, a company which now owns and rents out the houses. But in recent months, residents spoke of feeling forced out by huge hikes to their rent. Some Welsh Streets tenants have reported seeing their monthly rent shoot up by more than 30%.
The situation has seen residents – backed by housing union Acorn – at loggerheads with Placefirst. Last month a group of tenants and union members gained access to the Placefirst headquarters in Salford to protest about the rent increases.
But following this sustained pressure – and the intervention of the area’s Member of Parliament Kim Johnson, a new rent cap has been agreed for the houses. The cap will be held at 6% for the next year at least, Placefirst confirmed.
In a statement, the company said: “We can confirm that we have agreed with residents of the Welsh Streets that we will implement a rent increase cap of 6%. This follows a period of engagement with both Ms Johnson and our residents where we have listened carefully to their concerns about the rent increases initially proposed and the manner in which they were communicated.
“Whilst it has been reported that we initially proposed rent increases of up to 30%, this figure applied to only a few anomalous cases where households required a greater adjustment following a period of lower rent.
“However, we acknowledge that we didn’t get everything right when it comes to this issue, and we wholeheartedly apologise for the impact this has had. We are now committed to revising our approach, addressing any remaining concerns, and demonstrating our dedication to improving the way that we do things.
Placefirst said the proposed rent increase cap of 6% will mean that Welsh Streets residents will see an average increase of £57 per month, and no household will see an increase of more than £80 per month.
Welsh Street residents Michael McKeown and Steph Synyszyn(Image: Andrew Teebay Liverpool Echo)
The statement added: “This adjusted rate compares favourably to broader rental trends in the wider area and like-for-like properties. According to the Office for National Statistics, rental inflation over the past year has been 9.7% in Liverpool, and even higher in some other parts of the North West.
“We want to thank both residents and Ms Johnson for continuing to meet with us and work with us towards a positive resolution. Whilst we can’t yet confirm the likely cap for next year, we are committed to maintaining this open and honest dialogue moving forwards.”
Ms Johnson welcomed the move and hailed it as a victory for the campaigning residents. She said: ““I’m relieved that Placefirst has stepped back from the deeply unfair rent hikes that were initially on the table. A proposed increase of up to 30% was completely unacceptable, particularly during a cost of living crisis.
“While this revised cap is an improvement, my priority remains protecting residents and ensuring rents remain genuinely affordable.
“I welcome Placefirst’s decision, and I’ll continue to support residents in holding the company to account and making sure these conversations are meaningful and transparent.
“The Welsh Streets regeneration has been transformative, but that investment must not come at the cost of displacing long-term tenants.”
Ms Johnson added: “Public pressure works. The strength and unity of the Welsh Streets community has been crucial in achieving this step forward. My office will continue to monitor the situation closely and I encourage all tenants to continue sharing their experiences. Rent justice and tenant voice must be at the heart of how these homes are managed.
“Rents in the UK have far outstripped wage increases for years and are now at the highest point on record, particularly due to the recent surge during the cost-of-living crisis.
“Collective actions like this help to shift power back to residents and protect communities from being priced out. I’m proud of the wins from this campaign, but it shows the government must go far further and faster to protect renters.”