Laura Sharman 17 November 2022

Autumn Statement: Social housing rent rise capped at 7%

Autumn Statement: Social housing rent rise capped at 7% image
Image: Angelina Dimitrova / Shutterstock.com

Social landlords could see losses of £4.9bn in rental income over the next five years after the chancellor confirmed rents will be capped at 7% next year in his Autumn Statement.

Chancellor Jeremy Hunt has confirmed social housing rent increases will be capped under inflation at 7% in 2023/24.

The Government consulted on the proposed social rent cap earlier this year, suggesting either a 3%, 5% or 7% cap.

A government impact assessment published in August revealed that a 7% cap would reduce rental income by £4.9bn. Figures seen previously by The MJ revealed this cap would see London boroughs lose £223m over two years.

The Local Government Association (LGA) previously warned that any rent cap would not benefit the majority of council tenants directly because 60% receive housing benefit.

Instead, it argued the move would be a saving for the Department of Work and Pensions even though councils would have to cope with the impact of the lost income.

Moody's also warned the cap would put extra financial pressure on social landlords. Analyst for Moody's, Maylis Chapellier, said: 'The announced temporary ceiling on social housing rent increases at 7% next year is credit negative for housing associations and local authorities with social housing stock in England as it will constrain their revenue growth while they grapple with high inflationary pressures and the need to spend to address regulated standards on quality, safety and energy-efficiency.'

However, Mr Hunt said the cap would help protect households across the country from the rising cost of living.

SIGN UP
For your free daily news bulletin
Highways jobs

Highly Specialist Clinical Psychologist

Oxfordshire County Council
£62215 - £72293
How about joining The Clinical Team at Oxfordshire County Council in our new Community Family Clinic initiative? Oxford
Recuriter: Oxfordshire County Council

Traffic Management Officer - WMF2114e

Westmorland and Furness Council
£37,035 - £37,938
Are you an experienced and motivated professional looking to take the next step in your traffic management career? Cumbria / Various
Recuriter: Westmorland and Furness Council

Peripatetic Support Assistant

Wakefield Council
£16,415.00 - £16,675.23 Grade 4, 24.5 hours, Permanent
Are you caring, compassionate, and friendly? Wakefield, West Yorkshire
Recuriter: Wakefield Council

Peripatetic Support Assistant

Wakefield Council
£14,070.00 - £14,293.05 Grade 4, 21 hours, Permanent
Are you caring, compassionate, and friendly? Wakefield, West Yorkshire
Recuriter: Wakefield Council

Recruitment Support Officer

Durham County Council
£25,584 to £27,711 p.a. (Grade 5) pay award pending
We are looking for a Recruitment Support Officer to join our team on a temporary basis until 31 March 2026. In this role, you will provide a comprehe Spennymoor
Recuriter: Durham County Council
Linkedin Banner