Housing minister recognises need for rent policy that ‘strikes the right balance’

She said: “I’m well aware that while we all want to improve the quality of existing houses, it comes at a cost. And that’s an added strain on social landlords, on top of the difficult economic backdrop around what we believe is a necessary step to limit rent increases this year.

“It’s a challenging period for the sector, alongside the testing period for public finances more generally, and this government will do everything in its power to support you.

“In doing so, I recognise the importance of setting a rent policy for social housing that strikes the right balance between championing our shared ambitions on quality, and then what’s affordable for tenants and the welfare system. That’s the approach the government took last autumn when weighing up a very difficult set of competing priorities for rent-setting this year.”

Ms Maclean added: “And this is what I’ll be considering again, together with the housing secretary in the round as we publish our consultation on rent policy from 2025 later this year, before making decisions about rent and new requirements in the first half of 2024.

“So, quality matters; ensuring that existing homes are safe, decent and warm matters; but so too does quantity, meeting a significant demand for more social housing. And, as I’ve just outlined, this is made even more challenging by the need to invest more in existing homes or difficult operating environments.”

Ms Maclean said that she recognises that “certainty is what the sector needs”. She said there are lots of different things to consider and that there is always a tension between the income providers receive and the affordability for tenants, which impacts on benefits spend.

“You’re obviously aware of the pressures on people’s budgets,” Ms Maclean said.

“The sort of spending through the benefit system on Local Housing Allowance has been very significant. We need to consider all of that in the round.

“There is a lot of work going on across government and, of course, we’re always aware that you want to know as soon as possible, because we know you need to plan as far in advance as you possibly can.”

Ms Maclean said when it comes to levelling up, there are “few better places to start [than] by ensuring that everyone has a safe, decent and warm home”. She said that social housing providers are at the heart of the government’s long-term plan for housing.

Ms Maclean said: “All of you are at the heart of our efforts to provide a safety net and springboard and at the heart of our long-term plan for housing, that economic growth of building a stronger and fairer country. We have achieved a great deal. There’s always more to do.

“And in that spirit, we’re committed to go forward to supporting you to balance the challenges of improving quality and increasing supply within a difficult economic context and also to provide as much long-term certainty as possible.

“We will rise to these challenges and I’m sure we will grasp these opportunities and I look forward to working with you in the future.”