Social housing regulator writes to registered providers

The Regulator of Social Housing has written to registered providers following the government rent consultation 2022.

The government has proposed changing the cap on social housing rent increases.

The current cap is set at CPI+1%, which is expected to be around 11% in total for 2023-24. The consultation proposes three options for a lower cap: 3%, 5% or 7%. The government is also consulting on whether the cap should be applied for one or two years.

The letter encourages housing providers to respond to the consultation to provide evidence of how the proposals could affect HRA finances, maintaining existing homes and services and developing new homes.

The letter says: "We recognise that these proposals would have a significant, challenging effect on landlord finances.  Both tenants and landlords face increasing costs and reducing real-terms incomes. They will require you to make hard choices about investment and expenditure priorities, revise your business plans and take action to maintain compliance with the regulatory standards."