Council tenants to be offered £4k perk to move to smaller homes

In a scheme launched in East Lothian, couples could be paid as much as 4,000 to move into a new, smaller home.

And the city council admitted it was considering offering incentives such as help with moving house to encourage more people to "downsize" their home.

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The aim of the scheme is to free-up some of the larger council homes to help reduce lengthy waiting lists.

Recent figures estimated that there were 479 spare rooms in council houses in Edinburgh, due to 291 families living in "under occupied" homes. At the same time, 657 families on the council's waiting list were judged to be living in overcrowded situations.

East Lothian Council said its under occupancy grant would be awarded to any council tenant living in a house larger than they needed, who agreed to move into a smaller council or housing association property.

Tenants who meet the criteria will receive a general payment of 2,000 plus an additional 1,000 for each bedroom downsized. The council is planning to spend 110,000 on the incentive scheme over the next financial year, and the cost is being met from its own budget.

East Lothian Council has around 5,000 people on its waiting list, but last year just 400 of the 8,100 council houses were able to be reallocated to people due to moves.

Cabinet member for housing Councillor Stuart Currie said: "We have a shortage of properties and a high demand for housing in East Lothian, especially family-sized accommodation.

"Because of a change in circumstances, some tenants may find that they are in a house that is larger than they need. The scheme has been developed to encourage them to downsize by offering practical and financial incentives.

"We believe it's a win-win situation: the tenant receives support and a new property that better meets their requirements, while we can re-let the house to a family in need of larger accommodation. Experience has shown us that the incentives can create a positive vacancy chain where one move can result in five or six other transfers."

It is hoped incentive schemes could help ease the pressure while new council homes are constructed, and although the city council is not considering a cash payment.

A council spokesman said "This (financial incentive] is not something that we currently offer. However, incentives are currently being considered which may encourage tenants living in under-occupied homes to move.

"These incentives may include for example assistance with packing goods, removals and disconnection and reconnection of white goods to the tenant's new home. As a result this may increase the availability of family housing to applicants on the housing register."