Government Presses Ahead With Rent Convergence Plan

The government is pressing ahead with plans to scrap the policy of bringing social rents into line a year earlier than initially planned.  ‘Rent convergence’ – the process of gradually increasing social rents until they meet a ‘target rent’ – will end next April, the CLG has confirmed. In a long-awaited response to its consultation on social housing rents, the CLG upheld plans to limit social rent increased to consumer price index + 1 per cent from April 2015. Currently landlords can charge an extra £2 a week in order to reach target levels. Some landlords have warned the move could cost them tens of millions of pounds in lost income.  However the department stated it would widen the circumstances under which housing associations could apply to the HCA for exemptions from the new rent policy. Read more on Inside Housing.