Rents are being reduced over the coming year for the vast majority of Wandsworth council's 17,000 tenants.
From April, eight out of 10 tenants will pay less to rent their council property, while rents and service charge for the remaining tenants will be frozen at this years levels, Wandsworth Council said.
In a survey of London councils, Wandsworth's charges were found to be the capital’s lowest.
A council spokesman said while the Government is setting a guideline rent increase of £3.52 per week for council properties the average saving, for those receiving a reduction, was £1.10.
Wandsworth council is investing £31m over the next 12 months, rising to £65m by 2013, on major refurbishments and upgrading heating systems, lifts and security.
The Cabinet member for housing, Councillor Martin Johnson, said: “I’m pleased that we can achieve this reduction while continuing to invest in significant improvements to our housing stock.”
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