The Government is currently consulting on changes to social rents, which will allow the rent on some homes to increase gradually until they converge with their ‘target rent’. To help inform the discussion around rent increases The Housing Forum has published a briefing on social rents over the last ten years. This shows that:
- Social rents have fallen in real terms over the last ten years. Average rents in 2014 were £92.30 a week. If they had kept up with inflation, they would be £123.73, or if they’d kept up with earnings, they’d be £129.70. Instead, they’re £109.44.
- The proportion of income paid in rent by social renters has fallen from 29.2% to 26.4% since 2014-15.
- The proportion of social tenants who reported that they find it difficult to afford their housing costs fell from 41% in 2013/14 to 28% in 2023/24.
Anna Clarke, Director of Policy and Public Affairs at The Housing Forum said:
We know social landlords are always concerned about affordability and the costs of living for their tenants. However, our analysis shows that social rents have fallen quite significantly in the last ten years, and become more affordable. This is nice for tenants, but has put a lot of strain on the finances of social landlords. It holds them back from building new homes, as well as making it hard to maintain their existing stock. We were therefore pleased to see the Government’s proposals to allow rents to increase towards their target level. Rent convergence also means that the rents are fairer, with social tenants in similar properties paying the same rent.
Read our report here: Recent Trends in Social Rents and Affordability