Consultation on future social housing rent policy

In the Autumn Budget, the Chancellor announced a consultation on a new social housing rent policy, which proposes that social housing providers be allowed to increase rents by up to consumer price inflation (CPI) plus 1% annually for the period between 2026/27 and 2030/31. One of our key asks from the budget was to provide long-term financial certainty for our members and transparency for residents, so we have broadly welcomed the consultation. However, we know it’s only part of what’s needed to restore the financial capacity of the sector after decades of cuts.

The government is also gathering views on whether extending this policy to last seven or 10 years, or a rolling five-year settlement would offer the sector additional certainty and financial capacity.

The current proposals do not include any convergence mechanism to increase below-formula rents by more than CPI+1% until they are in line with the rent setting formula. This is a significant disappointment and will harm the sector’s financial capacity and ability to invest.

The proposals were also announced as part of a budget that increased employers’ national insurance contributions, which has substantially eroded the benefit of a CPI+1% settlement for many housing associations, particularly in the supported housing sector where staffing costs are high.

In the consultation the government explicitly recognises the financial pressures on housing associations and the importance of rent stability to address these.

We will be clear in our response that longer-term certainty is hugely welcome but is only part of what housing associations need to invest sufficiently across both new and existing homes.

The government approach is to balance affordability for residents and the benefit bill while bolstering housing associations’ ability to invest and plan for the long-term.

The government recognises that the array of new social housing regulation is likely to add to pressures facing housing associations and the consultation confirms they plan to consult on further reforms shortly, including the revised Decent Homes Standard in early 2025.

Roundtables

There will also be the opportunity to share your views with us at regional leaders forums, networks and national groups during the consultation period. If you are unable to attend any of these meetings, we are also holding two roundtable discussions to feed into our sector response. These will take place on the following dates. 

• Roundtable discussion on the rents consultation for supported housing providers – 25 November, 2-3pm (online) 
• Roundtable discussion on the rents consultation for general needs providers – 10 December, 10-11am (online) 

Please note that places at the roundtables are limited to two per organisation and are aimed at senior housing association executives. Please email us to register your place.

Webinar

We also hosted a webinar on 28 November during which we heard directly from MHCLG on their proposals and members were able to put their questions directly to them. NHF members can watch the recording.