A proposed cap on social housing rent has been proposed today by the Government, to help support households with the cost of living.
Under the proposals, the Government is considering caps at 3%, 5% and 7% for the coming financial year.
It said the move would save households an average of £300 per year and provide financial stability for four million families.
Housing secretary Greg Clark said: 'We know many people are worried about the months ahead. We want to hear from landlords and social tenants on how we can make this work and support the people that need it most.
'The rent cap would be temporary and would apply from 1 April 2023 to 31 March 2024. The consultation also seeks views on whether to set a limit for 2024-25. The Government understands this will impact social housing landlords and is engaging fully with the sector.'
The Local Government Association (LGA) and the National Housing Federation (NHF) warned that a new cap on rent could prevent providers from providing critical services to residents and investing in homes.
Cllr James Jamieson, chairman of the LGA and Kate Henderson, chief executive of the NHF, said: 'Decisions on the level of rent increases for tenants need to be made by housing providers within the existing government rent policy commitment, ensuring that there is a careful balance between affordability for tenants and investment in the homes that they live in.
'If the Government does take forward a lower cap, then it should provide additional funding for 2023/24 and for future years so that housing providers can continue to safeguard services and meet the country’s future housing needs.'
