Social rent control is being considered to help renters with living expenses.
The change might give 4 million families with financial security and a £300 annual savings.
Government measures to assist the most needy families include:
In order to better understand how to assist families with the expense of living, a consultation has been started today, Wednesday, August 31, to solicit opinions from social housing renters and landlords on a proposed rent ceiling.
According to the plans, a restriction on rent increases for social housing would be implemented for the next fiscal year, with possibilities at 3%, 5%, and 7% being explored.
Renters would save an average of £300 annually and have stability when inflation increases as a result of the measure, which would stop rents for council and housing association homes from increasing dramatically.
The amount that social housing rentals may rise each year is governed by government regulations. According to recent Bank of England predictions, this is now set at up to the consumer price index (CPI) rate + 1%, which may result in hikes of 11% in 2019.
In the face of pressure from rising living costs, the proposed new cap would aid in providing assistance for the most disadvantaged families. This is in addition to our current assistance package, worth £37 billion, which already includes a £150 council tax refund, a £400 energy bill reduction to help homes over the coming months, and support of at least £1,200 for the eight million most vulnerable households.
Greg Clark, the secretary of housing, remarked
During the next year, we must safeguard the most at-risk families in these unusual situations. Families all around England will have security and stability if rent rises for social renters are restricted.
We are aware that many individuals are anxious about the next months. In order to make this work and help those who need it most, we want to hear from landlords and social renters.
The temporary rent limit would be in effect from 1 April 2023 to 31 March 2024. In addition, opinions are being sought on whether a cap should be imposed for 2024–2025. The government is actively interacting with the industry since it recognizes how this would affect owners of social housing.
A final decision will be made after the consultation and released later this year so that social housing landlords have time to consider it when setting rent for April 2023.
Through a second survey that will start early next year, the government also pledges to reassess its social rent policy after 2025.
The government has put in place measures to assist the most needy families with the expense of living, and today’s statement is one of them.
This is in addition to the £11.5 billion investment made under the Affordable Houses Programme to develop additional high-quality, affordable homes.
For further information, in July 2022, the CPI was 10.1%. From 1 April 2023 to 31 March 2024, social housing rents may rise by 11.1% (or more) if the CPI stays at or above this level.
The consultation, which was just opened, will go for six weeks, ending on October 12.
The Secretary of State will instruct the Regulator of Social Housing on rent standards after the consultation period, confirming the maximum rent rise that social housing landlords may impose from 1 April 2023 to 31 March 2024.