The Housing Forum has responded to the Government’s consultation on How to Implement Social Rent Convergence. We welcome the commitment to allow rents to increase where they are below target, to increase fairness and to help alleviate the acute financial pressures facing social landlords.
We support rent convergence at rates of at least £2 per week. Many of our members would prefer to see a £3 cap, which would be on a par with the £2 cap that was used under the previous period of rent convergence, from 2012, adjusted for inflation.
This would reduce the risk of stock deterioration, improve the quality and supply of much-needed affordable homes and improve the financial stability of the sector. To help inform our consultation response, we published some analysis on Recent Trends in Social Rents and Affordability which indicated 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.
You can download our full response to the consultation here: Consultation on How to implement Social Rent convergence – Response from The Housing Forum