From Department for Levelling Up, Housing and Communities and The Rt Hon Greg Clark MP:
A consultation has been launched today (Wednesday 31 August) to invite views from social housing tenants and landlords on a proposed rent cap to understand how best to support households with the cost of living.
Under the proposals, a cap on social housing rent increases would be put in place for the coming financial year, with options at 3%, 5% and 7% being considered.
The move would prevent rents for council and housing association houses from rising significantly, saving tenants an average £300 per year and providing stability as inflation rises.
The government regulates how much social housing rents can increase each year. Currently this is set at up to the consumer price index (CPI) rate plus 1% – meaning potential increases next year of 11% in line with recent Bank of England forecasts.