Our response to the social housing rent cap consultation
The Department for Levelling Up, Housing and Communities has launched a consultation to invite views from social housing residents and landlords on a proposed rent cap.
The consultation comes as part of the government’s response to the cost of living crisis, with the view to protect the most vulnerable households in exceptional circumstances.
Social housing rents are already regulated by the government, with rent increases set in line with the consumer price index (CPI) rate, plus one per cent. However, recent Bank of England forecasts suggest that by next April this could mean a potential increase of 11.1% or more.
The consultation has put forward four options a 3%, 5% or 7% cap, or no change at all.
Our CEO, Anita Khan said:
“It’s right to be concerned about affordability. The cost of living crisis has pushed people further into poverty and more support needs to available for vulnerable households.
We welcome government’s decision to launch a consultation, which will help residents and landlords prepare for the next financial year.
However, although the cap will protect residents from an unprecedented rent increase, it will have a significant impact on our ability to improve our services and our residents homes.
As part of the consultation, we will recommend a 5% cap to ensure residents are protected, as well as the required income to deliver our strategy.”
The consultation will run for six weeks, closing 12 October.