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Rents for social housing from 2020-21 07/03/2019 Labelled as Rent

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, argued:


  • that there was no need to extend rent regulation to local authorities;
  • 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 consultation.


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

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