The authoritative publication Inside Housing says the Department for Levelling Up, Housing and Communities is pondering a formal consultation on limiting rent increases which social landlords can implement to no more than 5.0 to 7.0 per cent in 2023-24.
This is despite a possible general inflation rate of 18 per cent next year in the UK if a forecast by banking firm Citigroup proves accurate.
The government typically sets a limit on how much social housing rents can increase each year, subject to certain exceptions.
The current policy came into effect in April 2020 and permits rents to increase by up to the value of Consumer Price Index inflation as at the previous September, plus one per cent annually.
The publication says: “One source close to the situation told Inside Housing that the government had been considering a consultation for a couple of weeks, and that it was likely to be ‘quite open-ended’, giving the next administration room to manoeuvre.”
Inside Housing says that if it does go ahead, the DLUHC consultation could explore possible changes to the formula for rent-setting in the social housing sphere.
DLUHC declined to comment to the publication on whether a consultation was planned.
A spokesperson said: “We set clear limits on how much social housing rents can increase. Social landlords are free to apply lower increases or reduce rents if they wish to do so, and we expect them to carefully consider the impact on their tenants when making decisions about rents.
“We keep all our programmes under regular review, and work with housing associations and other providers to understand any risks to delivery, including the effects of inflation.”
Meanwhile, in a separate development, controversial Brexiteer Jason Rees-Mogg is being lined up to become Housing Secretary if Liz Truss wins the Conservative party leadership, according to The Times.
Rees-Mogg is an ardent free marketeer but has historically showed little interest in housing.
He has supported the concept of charging a market rent to wealthy individuals renting a council home and consistently voted for phasing out secure tenancies for life.
He was also a supporter of the so-called ‘bedroom tax’- the policy which meant you would receive less in Housing Benefit or Universal Credit if you live in a housing association or council property and you were deemed to have one or more spare bedrooms.
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Rees-Mogg to be housing minister, that could be a good thing, there are many wealthy ''champagne socialists '' enjoying subsidised rents blocking young families from social housing, namely left wing council and union leaders
Bob Crow was one. Eddie Dempsey at the RMT at the moment. Disgusting hypocrites.
And who thinks that this won’t follow us in the PRS 🤔🤔 18% inflation 😩 and not able to increase the rent? Then maybe an evictions ban 😩 …. I think the next 12 months will be the biggest upset this country has seen since the mid 70’s.
Social rents should never be lower than the LHA. There are so many perks that go with social housing such as security of tenure, no requirement for a deposit or guarantor, etc. Charging way below market rent even though a sizeable proportion of social tenants have good jobs and earn decent money is just bizarre. Setting rents at LHA would still be significantly below market rent in many parts of the country but would be a step in the right direction.
Social rents should start at Full market rent, then a sliding discount given to genuine low earners
I assume Jason is in fact Jacob? Sloppy reporting. Also known as the Minister for Victorian Affairs, I'm not quite sure how that translates into housing? Perhaps he will bring back tenement buildings to house the hotels & reinstate the outside toilet?
I think Jacob Rees Mogg might be good for landlords. He has opposed further landlord regulation. If he scrapped that Rental Reform White paper and abolished all local authority licensing schemes, then there would be a great deal more property available to rent and rents would naturally fall. The increased stability would be a very good thing for both landlords and tenants.
As Simon says, the lefties will never let that happen, far too sensible. Let's face it, if someone started fixing the housing crisis, all the lefties and hangers on in Shelter and Generation Rant will have to go and get a proper job. Can't be having that!
Ellie- The left will never allow that to happen 🙄
Rent Controls for Social Housing, - oh don't make me laugh.
Govt brought in ' Affordable rents ' as a measure to allow Social Housing to charge, AND be paid, up to 30% More than the LHA that a Private landlord would receive from a private tenant.
This 'extra cash, courtesy of tax-payers, was for diversion into Social ( read Private, allegedly not-for-profit [sic] building of new homes.
To be clear, a Pair of semi detached identical properties, one owned by Social Housing, the other by private landlord. Lets say the LHA rent is £500 for round figures.
Private landlord gets UC Housing element payment of £500 ( if lucky ) but the Housing element payment to social landlord, from tax-payer is £500 plus up to 30% Equals £650. ( This is only for new assured tenants after the introduction of A.R. which some Social Housing critics point to an incentive for Social Housing eviction. )
Only bigger laugh than Affordable rent, is The Levelling up brigade talking about abolishing Sec 21 to make a level playing field for tenants. !
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