Following lots of speculation, the Government has today launched a consultation on a proposed temporary rent cap on social housing rents to protect tenants from the rising cost of living. The consultation is available here and will seek the views of landlords and tenants up until 12 October.
Under the current Rent Standard, with predictions about consumer price inflation levels in September, providers could be making increases of approximately 11% next April. Everyone acknowledges the additional financial pressures this would place on tenants, facing wider increases in the cost of living.
However, for landlords facing increases in costs themselves, a cap on rent increases would also mean additional financial limitations. The tension between the two issues is huge and one that many boards will grapple with over the coming months whilst awaiting the outcome of the consultation.
We would encourage providers to respond to the consultation to set out the impact a cap would have and to engage with the National Housing Federation and the Local Government Association in their responses.
This consultation seeks views on a new Direction from the Secretary of State to the Regulator of Social Housing in relation to social housing rent policy.