- Social rent cap proposed to support tenants with cost of
living
- Move could save households £300 per year and provide
financial stability for four million families
- Part of Government’s efforts to support most vulnerable
households
A consultation has been launched today (Wednesday 31 August) to
invite views from social housing tenants and landlords on a
proposed rent cap to understand how best to support households
with the cost of living.
Under the proposals, a cap on social housing rent increases would
be put in place for the coming financial year, with options at
three, five and seven per cent being considered.
The move would prevent rents for council and housing association
houses from rising significantly, saving tenants an average £300
per year and providing stability as inflation rises.
The Government regulates how much social housing rents can
increase each year. Currently this is set at up to the consumer
price index (CPI) rate plus one per cent – meaning potential
increases next year of 11% in line with recent Bank of England
forecasts.
The proposed new cap will help support the most vulnerable
households in the face of cost-of-living pressures. This comes on
top of our existing £37 billion support package, which includes a
£150 council tax rebate, a £400 energy bill discount to support
households over the coming months and the most vulnerable eight
million households receiving support of at least £1,200.
Housing Secretary said:
“We must protect the most vulnerable households in these
exceptional circumstances during the year ahead. Putting a cap on
rent increases for social tenants offers security and stability
to families across England.
“We know many people are worried about the months ahead. We want
to hear from landlords and social tenants on how we can make this
work and support the people that need it most.”
The rent cap would be temporary and would apply from 1 April 2023
to 31 March 2024. The consultation also seeks views on whether to
set a limit for 2024-25. The Government understands this will
impact social housing landlords and is engaging fully with the
sector.
Following the consultation, a final decision will be announced
later this year, to make sure social housing landlords have
enough time to factor this into their rent decisions for April
2023.
The government is also committing to reviewing social rent policy
beyond 2025, via a separate consultation due to be launched next
year.
Today’s announcement is part of measures the Government has put
in place to support the most vulnerable households with the cost
of living.
This is in addition to the £11.5 billion investment to build more
affordable, quality homes through the Affordable Homes Programme.
ENDS
- CPI was 10.1% in July 2022. If CPI remains at or above this
level in September this will permit social housing rent increases
of 11.1% (or more) from 1 April 2023 to 31 March 2024.
- The consultation launched today will run for six weeks
closing on 12 October.
- Following the consultation period, the Secretary of State
will direct the Regulator of Social Housing on rent standards,
confirming the maximum amount social housing landlords can
increase rents by for 1 April 2023 to 31 March 2024.
