Council tenants could see their rents raised to 80 per cent of the market rate.

Barnet Borough Council is currently consulting on its draft housing strategy for the next ten years.

The authority faces a number of challenges, including a huge growth in population, with Barnet set to become London’s most populated borough by the end of the year.

Proposals could see council rents set at 80 per cent of the average market rate, or Local Housing Allowance (LHA) level, depending on which is lower, for new builds and for when empty properties are re-let.

Existing tenants could also have their rents raised, with a consultation planned for increasing rents to LHA or 80 per cent market rent.

Barnet Council says the additional income will be spent building more affordable homes.

Councillor Tom Davey, Conservative chairman of the housing committee, said: “There is a direct link between council rents and the amount of affordable housing we are able to supply. With a rapidly growing population and high demand it is right to set the rents on new properties and on re-lettings at a rate that helps us increase this supply.”

But Jenette Evans, from the campaign group Barnet Housing Action, said: “They need to redefine the term affordable. 80 per cent of market rate is not going to be affordable for most average lower wage workers.

“They did the same with the council tax in the borough by cutting the support. It will be impossible for people. Wages and earnings don’t align with 80 per cent market rate. It’s unprecedented in London. People will have to leave in droves.”

Councillor Ross Houston, Labour’s housing spokesman, said the proposal was “wrong”.

He added: “Market rents have been heading upwards at a rate that incomes have not. A lot of council tenants work and do not get full housing allowance, and these people will really be hit.

“Social housing is for people on lower incomes, and these people will not be able to afford 80 per cent rents.”

The consultation is open until March 30 and can be accessed at http://engage.barnet.gov.uk/housing-planning-and-regeneration/barnet-housing-strategy-2025-to-2025