A consultation has been launched on a rent cap on social housing to assist tenants with the cost-of-living crisis – tenants and landlords have been encouraged to participate
A consultation has begun on proposals to create a rent cap on social housing, aimed at protecting vulnerable tenants from the cost-of-living crisis.
Under the proposals being consulted on, a cap on social housing rent increases would be put in place for the coming financial year, with options at 3%, 5% and 7% being considered.
Households could save £300 per year and provide financial stability for 4m families
The move would prevent rents for council and housing association houses from rising significantly, saving tenants an average £300 per year 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 1% – meaning potential increases next year of 11% in line with recent Bank of England forecasts.
The proposed new cap will help support vulnerable households in the face of cost-of-living pressures.
Housing secretary Greg Clark 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.”
Landlords are also invited to participate in the consultation
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.
The consultation on a rent cap on social housing will run for 6 weeks, closing on 12 October.
