Social Rented Housing: Rents and Service Charges
The question
To ask the Secretary of State for Housing, Communities and Local Government, what assessment has she made of the potential merits of (a) freezing rents and (b) capping service charges for housing association social tenants.
Answered by Matthew Pennycook
Individual circumstances will vary, not least depending on whether tenants receive Housing Benefit or the housing element of Universal Credit to help pay their rent, and whether they are affected by the total benefit cap or the removal of the spare room subsidy, but the government recognises that increases in rents can have an impact on the disposable income of social housing tenants.
We recently consulted on a long-term rent settlement that would allow social housing rents to increase by up to CPI + 1% each year for five years from 2026. As part of that consultation, we invited views on whether this proposal or alternative options would strike the right balance between the need for increased investment in new and existing homes and the interests of those whose disposable income would be affected by rent increases, as well as the consequences for welfare spending.
The consultation closed on 23 December 2024 and my officials and I are giving careful consideration to the responses received.
The government has no plans to freeze rents or cap service charges for tenants and leaseholders.
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