The Regulator of Social Housing (RSH) has warned housing associations they must not compromise landlord services if the government’s proposed cap to rent increases goes ahead.

In a letter to chief executives of housing associations, RSH chief executive Fiona MacGregor said the regulator recognises the rent cap proposals “will have significant, challenging effects on landlords’ finances.”

She said: “They will require you to make hard choices about investment and expenditure priorities, revise your business plans and take action to maintain viability and compliance with the regulatory standards.