Across the UK, many households are feeling the effects of the cost-of-living crisis with continuously soaring energy costs and rising food bills

Today (31^st August 2022), the Department for Levelling Up, Housing and Communities have launched a consultation on a proposed rent cap in social housing in a bid to protect the country’s vulnerable households. The proposals, if implemented, could save households up to an average of £300 a year, providing some stability as inflation continues to rise.

Currently, social housing rents are regulated to increase each year at a rate of the consumer price index plus 1% which could mean potential rent increases next year of 11% in line with the latest Bank of England forecasts.

Under the proposals, a cap on social housing rent increases would be put in place for the coming financial year, with options at 3%, 5% and 7% being considered. The temporary cap would be applied from 1^st April 2023 to 31^st March 2024, with further consideration of a limit being set for 2024-2025.

The consultation opens today with views being invited from tenants and landlords on the proposed rent cap. It will run for 6 weeks, closing on 12^th October 2022 and a final decision will be announced later in the year to allow time for social housing landlords to factor this into their rent decisions for April 2023.

The government has also announced it is committing to reviewing social rent policy from 2025 in a separate consultation due to be launched next year.

Today’s announcement is part of measures the government has put in place to support the most vulnerable households with the cost of living.

Responses to the current consultation can be submitted online, or by completing a response form.

Further information can be found here https://www.gov.uk/government/consultations/social-housing-rents-consultation