The Government has consulted on a new rent policy that will take effect from April 2026. They are proposing allowing rent increases of up to CPI+1% for 5 years, and seeking views on a longer-term settlement (such as 10 years) or a rolling settlement. The Housing Forum is supportive of a rent settlement of a least 5 years and have raised the following points in our response:
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Social rents have fallen considerably in real terms since 2016, while costs have risen. There is an urgent need to address the deficit in the finances of social landlords that this has created. Full alignment to target rents over a relatively short timescale would be the best way to address this.
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A longer term settlement – such as 10 years – gives the sector more certainty and will help to leverage in additional funding from institutional investors.
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To ensure confidence in the rent settlement it is vital that it has both cross-departmental and cross-party support
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There are a wide range of further measures that the Government should take to build capacity within the social housing sector as rents cannot pay for all the regulatory and policy agendas required.
Read our response in full.
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