Consultation On Rent Policy Due “Very, Very Soon”

Secretary of State Sajid Javid is reported as saying that housing associations and councils can expect consultations the government's rent policy post 2020 "very, very soon". The government's previous 10 year social rent policy introduced in May 2014 was scrapped by George Osborne in the Summer Budget of 2015 and there has been a huge reduction in rental income as a result of the 4 years of mandatory year on year 1% rent reductions up to 2020 imposed by the Welfare Reform & Work Act 2016 with ongoing uncertainty about future rent policy. However the government's Housing White Paper promised to set out a rent policy for housing associations and local authorities for the period beyond 2020. Read more on the ARCH website.

Council Housing – Parliamentary Written Answer

Lord Beecham: To ask Her Majesty’s Government what assessment they have made of the impact of the reduction in council housing rents on (1) the maintenance and improvement of the existing council housing stock, and (2) the building of new council houses between now and 2022.

Lord Bourne of Aberystwyth: I refer the noble Lord to my previous answer to him on 27 March - PQ HL6120. As stated in the Housing White Paper, the Government will in due course set out a rent policy for social landlords for the period beyond 2020 to help them to borrow against future income. Our aim is to ensure that they have the confidence they need about their future income in order to plan ahead.

Council Rents After 2020

The government has promised further discussions with the housing sector before setting out a new rent policy for the period beyond 2020 "in due course". The policy will help raise borrowing against future income. The recent Housing White Paper confirmed the government will continue with its policy of reducing council and housing association rents by 1% a year for the next three years but promises an announcement "in due course" on a rent policy for social housing landlords (both housing associations and local authorities) for the period beyond 2020. The earliest likely date for an announcement on a new social rent policy is this year's autumn Budget. Read more on the ARCH website.

Rent Review Vital To Avoid Social Housing Industry Grinding To a Halt

Government must commit to a public review of social and affordable housing rent policy or risk the industry grinding to a halt, according to the Chartered Institute of Housing (CIH) and housing association L&Q. The organisations are calling for a formal government review of rent policy with a view to proposing a new framework and long-term settlement.  The current settlement, where rents increase by RPI plus 0.5% every year, is due to come to an end in 2015.  Read more on the CIH website.