UK Considering Temporary Rent Cap for Social Housing Tenants

BY Realty+

The government has launched a consultation which could lead to social housing tenants in England being protected from soaring rents through the introduction of a temporary cap. It comes as ministers face growing pressure to ease the burden of the rising cost of living for households across the UK.

Social housing tenants and landlords are being asked for their views on the idea of a proposed rent cap, which the government says could save vulnerable households an average of £300 per year and provide financial stability for four million families. The temporary cap would apply from 1 April 2023 to 31 March 2024 and the consultation, launched today, will also seek views on whether to set a limit for 2024-25.

Social housing tenants and landlords are being asked for their views on the idea of a proposed rent cap, which the government says could save vulnerable households an average of £300 per year and provide financial stability for four million families. The temporary cap would apply from 1 April 2023 to 31 March 2024 and the consultation, launched today, will also seek views on whether to set a limit for 2024-25.

The move is being considered as social housing rents are currently regulated to increase each year at a rate of the consumer price index rate plus 1% - which could mean potential rent increases next year of 11% in line with the latest Bank of England forecasts. Housing Secretary Greg Clark said: "We must protect the most vulnerable households in these exceptional circumstances during the year ahead. Putting a cap on rent increases for social tenants offers security and stability to families across England. We know many people are worried about the months ahead. We want to hear from landlords and social tenants on how we can make this work and support the people that need it most."

The government has also announced it is committing to reviewing social rent policy beyond 2025 through a separate consultation due to be launched next year. The temporary rent cap would come on top of the current £37bn support package already pledged by the government, which includes a £150 council tax rebate, a £400 energy bill discount to support households over the coming months and £1,200 awarded to the most vulnerable eight million households.

The government continues to be under growing pressure to announce further support to get households and businesses through the cost of living crisis after last week's news that the energy price cap would rise by 80% in October, leading to the average household paying £3,549 a year for their gas and electricity.

Tags : government tenants England rents temporary cap UK social housing landlords government Greg Clark Housing Secretary