A consultation has been launched to invite views from social housing tenants and landlords on a proposed rent cap to understand how best to support households with the cost of living.
Under the proposals a cap on social housing rent increases would be put in place for the coming financial year with options at three per cent , five percent and seven per cent being considered.
The move would prevent rents for council and housing association houses from rising significantly saving tenants an average £300 per year and providing stability 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 one per cent – meaning potential increases next year of 11 per cent in line with recent Bank of England forecasts.
The proposed new cap will help support the most vulnerable households in the face of cost-of-living pressures. This comes on top of our existing £37 billion support package, which includes a £150 council tax rebate, a £400 energy bill discount to support households over the coming months and the most vulnerable 8 million households receiving support of at least £1,200.
Following the consultation, which ends 12 October 2022, 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 announcement is part of measures the government has put in place to support the most vulnerable households with the cost of living. This is in addition to the £11.5 billion investment to build more affordable, quality homes through the Affordable Homes Programme.
If you are a social housing tenant or landlord and would like to take part in the consultation you can do so here.