Inflation figure confirms maximum rent increases allowed next year, excluding any additional uplifts from rent convergence
Housing associations and councils in England will be allowed to raise their rents by up to 4.8% next year, it has been confirmed.
The Office for National Statistics yesterday published its latest inflation figures. The Consumer Price Index rose by 3.8%.
Under the new 10-year social housing rent settlement announced in the spending review, registered providers can raise rents by the September CPI plus 1%.
The 3.8% figure is not an outlier for the year, as it was the same figure in July and September while CPI ranged from 3.5% to 3.6% in April to June.
The government however is also considering how to re-introduce rent convergence, which would allow higher than 4.8% increases on some properties.
Rent convergence would allow rents on social rent properties that are currently below ‘formula rent’ to increase by an additional amount each year, over and above CPI plus 1%.
The government in its consultation paper asked if this amount should be an extra £1 or £2 on weekly rents. Some in the sector, including the National Housing Federation are calling for a £3 uplift.
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