Government plans to launch consultation on rent policy for next year

In recent months, speculation has been rife in the sector about whether the government will intervene, for example by introducing a rent cap.

Some housing associations want to see a trade-off whereby they are allowed to raise rents by less than the CPI plus one per cent rule this year, but then increase them in future when inflation is lower and the economy is in a better place, to recoup their losses.

Now the Department for Levelling Up, Housing and Communities has revealed that details on a consultation on next year’s rents will be announced in due course. No further information on the consultation is available at this stage.

A government 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.”

Social Housing understands that some associations and organisations, such as the G15 group of London’s largest landlords, have been in talks with government over the rent dilemma.

Speaking to Social Housing about the rent-setting issue, James Prestwich, director of policy and external affairs at the Chartered Institute of Housing, said: “Despite the political uncertainty that exists at the moment, I’m confident that the officials and ministers are aware of the importance of this issue and the importance of getting to a solution that will work for all parties.”

Earlier in the year, senior figures at the Regulator of Social Housing (RSH) indicated that government intervention was not at that time expected.

In June, speaking at the Housing 2022 conference in Manchester, Fiona MacGregor, chief executive of the Regulator of Social Housing, said: “At the moment we don’t have government showing any intention yet of getting involved [on rents], which is not the same as saying that it might not think in due course that it should.”

In April, research by Social Housing’s sister publication Inside Housing found that the majority of England’s largest housing associations had raised rents for the current year by 4.1 per cent, the full amount permitted.