The Government has today confirmed that next year’s social housing rent increases will be capped at 7%.
WS Senior Associate Matt Cowen who specialises in social housing governance has said,
“No doubt there remain tough times ahead for many social housing tenants squeezed by the cost-of-living crisis, but the introduction of this rent cap will partly mitigate the 11.1% rent increases that would have otherwise taken effect from next April, being September’s CPI rate of 10.1% plus 1%.
“Social housing landlords also face their own financial pressures, particularly in relation to meeting development targets and decarbonisation commitments. They will need to consider how this cap on their main source of income impacts those plans whilst ensuring, as far as possible, that a reduced income does not lead to less and lower quality housing stock over the medium to long term. This requires careful consideration and, in some cases, will involve RP boards making difficult trade-offs.
“It should also be remembered that the rent cap announced today does not apply to shared ownership rents or private sector rents.”
Matt’s comments have been covered in Housing Digital, Inside Housing London Loves Property, Inside Conveyancing and Property Reporter.