Social housing tenants in England could be protected from spiralling rents during the cost-of-living crisis with a cap from next April, the Government has said
Under the proposals, a cap on social housing rent increases would be put in place for the coming financial year, with options at 3%, 5% and 7% 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.
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 rent cap would be temporary and would apply from 1 April 2023 to 31 March 2024. The consultation also seeks views on whether to set a limit for 2024-25. The government understands this will impact social housing landlords and is engaging fully with the sector.
Following the consultation, 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.
