This briefing outlines the new Rent Standard, to take effect on 1 April 2020, which allows for rent increases up to CPI+1% each year.
10 January 2020
Here is a summary of the key changes:
- As a general rule the rent increase applies to all tenancies that are currently subject to the rent reduction requirement.
- The rules apply to the Average Weekly Rent (AWR) whereas the previous rent decrease requirement applied to the rent due in respect of the whole year.
- The rent reduction requirement ends on 31 March 2020 but existing tenants must benefit from the rent reduction for a full year.
- Tolerances remain at 5% for general needs housing and 10% for supported housing.
- For the first time the Rent Standard will apply to local authorities.
After four years of rent cuts, we welcome a return to allowing inflation-based rent increases. We feel this will maintain affordability for residents while allowing housing associations to invest more in new homes and existing communities.
The sector relies on rental income for the upkeep of housing, the delivery of essential services to residents, and to help the sector deliver the housing the country needs.
Communicating with your residents
If you're a housing association planning to increase your rents, it's important to work with your colleagues to engage with residents and communicate clearly and openly about these changes.
This can include any consultation you have done or are doing, how you have come to your decision and how you will use any additional income.