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.
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