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<p>Affordable rents were never defined as 70% of the local market rent. Affordable
Rents were introduced in 2010, and with rents to be set at any level, up to 80 per
cent, of market rents. Rent setting has to take into consideration local needs and
the local market context. In London the average Affordable Rent is around 65 per cent
of market rents.</p><p> </p><p>The Affordable Rent model allows us to reduce the level
of grant required for each home from over £66,000 to an average of £24,500 per home.
This enables us to deliver more homes for every pound of Government investment, so
more people in housing need can have access to a good quality home with at a sub-market
rent. Since April 2010, we have delivered 260,000 new affordable homes.</p><p> </p><p>The
National Audit Office report on the <em>Financial viability of the social housing
sector</em> concluded that the Affordable Rent model maximised benefits and the number
of homes that could be delivered within the available grant funding.</p><p> </p><p>
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