posted on 11 October 2017, updated on 11 October 2017
The government has now confirmed details of future social rent policy from 2020, after the four-year period of 1% rent decreases ends. The announcement is intended to create a more stable financial environment by giving providers more certainty over rents.
Under the Welfare Reform and Work Act 2016, registered providers are required to ensure that the amount of rent payable by a tenant for a relevant year is at least 1% less than the amount payable for the preceding 12 months. This applies for four years from 2016/17 to 2019/20.
The new announcement confirms that for the five years from 2020/21, providers will be able to increase rents, up to a limit of CPI plus 1% each year. The government will consult on a direction to the social housing regulator in 2018.
The government has also announced that funding for affordable homes through the Affordable Homes Programme is being increased by £2bn, from £7.1bn to £9.1bn. In addition, support will be available for social rent, rather than just market rent and low cost home ownership.