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New social rent deal announced

Words: Laura Edgar
Rent / iStock

Housing minister Kit Malthouse has announced a long-term social housing rent deal to increase the quantity and improve the quality of social housing.

It caps rent changes at a sustainable level to provide councils, housing associations and tenants with certainty.  

The five-year deal comes after the publication of the social housing green paper last year which set out how the government plans to empower residents and tackle the stigma surrounding social housing. It aims to rebalance the relationship between tenants and landlords.

The rent cap comes after a consultation held last year on capping annual rent increases at up to Consumer Price Index (CPI) inflation +1 per cent for five years from 2020. The government said it is now directing the Regulator of Social Housing to set this new standard on rents, to come into force on 1 April 2020.

It will, the government continued, provide housing associations and councils with a stable financial environment to support the delivery of new homes, while also providing tenants with the certainty that they will be protected from excessive real-terms rent increases.

Malthouse said: “The new rent deal will ensure that housing associations and councils have the certainty they need to manage, maintain and build more social housing – providing tenants with high-quality homes and helping to restore the dream of home ownership for a new generation.”

“The government is also directing the regulator to apply the new rent standard to both councils and housing associations. Previously, only housing association rents have been regulated in this way. This will further support the principle that all social tenants should receive similar levels of protection.”

Image credit | iStock