Social Housing Rents - Playing the Percentage Game

Inflation is falling and could soon reach a negative figure – but neither tenants nor social landlords should start celebrating when it comes to rents. From April, most tenants face a typical rent rise of 2.2% – more than four times current inflation according to the consumer price index (CPI). It will be even harder in Bolton after Bolton at Home successfully applied for a waiver allowing it to exceed a new government rent formula for up to four years. For the vast majority of landlords that raise rents according to the new formula of CPI (as it stands each September) plus 1%, there is a further issue. If inflation continues falling they must reconcile what, in their eyes, are relatively low rent rises with long-term spending plans. Read more on 24dash.

UK First As Housing Association Granted 'Rent Waiver'

A housing association that owns ex-council homes in Bolton has become the first in the country to be told it can exceed the government’s new formula for rent increases. While most associations can only raise rents in April by 2.2% - a figure based around the rate of inflation last September - Bolton at Home convinced the HCA that it needed larger increases to fund stock improvements. Some of its tenants can therefore expect to pay as much as £2 per week more on top of the general 2.2% rise.  Read more on 24dash.

CLG under Fire over Rent Plans

The government has come under fire over plans to offer temporary waivers to housing associations financially hit by proposed changes to social rent setting, but not to councils. The CLG published a consultation - Rents for Social Housing from 2015-16 - outlining proposals to end rent convergence - a policy intended to align council and housing association rents through gradual increases - in 2015, earlier than previously anticipated.  Landlords with average social rents that have not yet converged have warned the policy will reduce their income, capacity to build and in the cases of some stock transfer organisations, their financial viability. As a result the CLG stated ‘temporary waivers’ would be granted to some housing associations by the Homes and Communities Agency. However, it offered no such aid to councils which, according to Chartered Institute of Housing figures stand to lose £1.2 billion over the next 10 years as a result of the proposals. Find the consultation either on the Gov UK website or on the Consultations Page in this Blog.