Associations Stress-Test Over Fear Rent Settlement Will Change Post-Brexit

Housing associations are stress-testing for the possibility that the government will renege on a promise to allow plus-inflation rent increases after Brexit. The Bank of England’s worst-case scenario for a “disorderly” Brexit said that inflation could rise to 6.5%, which would be the highest level since 1991. Currently, housing associations’ rents are falling by 1% every year, thanks to a policy introduced by George Osborne at a time when associations had been promised rents would increase by the Consumer Price Index (CPI) inflation plus 1%. The government has since pledged to return to the CPI plus 1% regime from 2020 but associations fear that a post-Brexit inflation hike could cause this to change. Read more on Inside Housing.

https://www.insidehousing.co.uk/news/associations-stress-test-over-fear-rent-settlement-will-change-post-brexit-60073?utm_source=Housing60&utm_medium=email&utm_content=article_link&utm_campaign=H60