High-Income Tenants Exempt From Rent Cut

The 1% annual rent cut will not apply to households with household income of £60,000 or more, the government has said. The exemption was made in secondary legislation to the Welfare Reform and Work Act, which forces housing associations and councils to reduce their rents by 1% every year for four years. The Social Housing Rents (Exceptions and Miscellaneous Provisions) Regulations state that the rent reduction will not apply to households meeting the income qualification criterion, which is £60,000. Between 11,000 and 21,000 households living in social housing earn more than £60,000, according to government documents produced in 2013. Download the Regulations from the GovUK website.