The government has published its response to the consultation on
rents for social housing from April 2020 onwards.
The consultation was published in September last year
and included a draft direction to the Regulator of Social Housing
and accompanying policy statement, focussing on two issues:
- bringing local authority registered providers within the scope
of the Regulator's rent standard;
- permitting registered providers to increase rents by up to
CPI+1% for "at least five years" from April 2020.
In responding to the consultation, ARCH, along with others,
- that there was no need to extend rent regulation to local
- that there should be more flexibility around the rent increase
limit of CPI + 1%; and in particular, that where rents remain below
formula, local authorities should be able to charge a small
additional annual increase until the formula rent is met;
- that the Government should extend the commitment to CPI+1% to
at least 10 years from 2020 to give local authorities a more
certain basis on which to plan investment.
Click here to read the full ARCH
response to the consultation paper.
In confirming the social rent policy from 2020-21 the Government
has not accepted any of these arguments, and the response confirms
the government's intention to proceed as originally proposed. Read the government's response to the
Alongside its response to the consultation the government have
also published the Secretary of State's final Direction to the
Social Housing Regulator (and the accompanying Policy Statement on
rents for social housing). The Regulator will publish its proposed
Rent Standard in due course.
The Policy Statement replaces the previous guidance on rents for
social housing issued in May 2014. The document contains
information on the background to social rent policy, calculating
Formula Rents, Affordable Rents, Social Rents and rents for social
tenants with high incomes.
The Policy Statement continues to contain flexibility for Social
Landlords to set rents for individual properties at up to 5% above
Formula Rent (10% for supported housing) providing there is a clear
rationale for doing so.
The Policy Statement also provides discretion for social
landlords to charge higher rents for properties let to households
with an income of at least £60,000 per year.
Click here to see the government's
policy statement on rents for social housing.
Click here to see the Secretary of
State's final Direction to the Social Housing Regulator