Rent Increases to Slow On the Back of Low Inflation

Social housing tenants are likely see lower rent increases next year after the Treasury released inflation figures.  The retail price index for September, one of the key measures for economic growth, fell to 2.6 per cent - its lowest level since December 2009. September’s RPI figure is used as the basis for calculating rents for the following year.  The news means housing association and council tenants can expect to pay rent increases of no more than 3.1 per cent, not including up to £2 a week extra that some tenants could pay under rent convergence rules.  However, many benefit claimants could face harder times after the consumer price index fell to a three-year low of 2.2 per cent. The CPI is used as a base for a number of benefits including income support and the Jobseeker’s Allowance, though not housing benefit.  Read more on Inside Housing.