The Regulator of Social Housing has today confirmed that the 7% cap on Social and Affordable Rent increases will not be extended after 31 March 2024, and rent increases from 1 April 2024 will revert to CPI + 1%.
This means that Registered Providers of Social Housing will be permitted to increase rents by 7.7% from April 2024 which is only marginally above the cap of last year. Of course, this is a maximum increase permitted and RPs can decide to increase to a lesser extent.
Guidance: Limit on annual rent increases 2024-25 – from April 2024 (accessible version)
Rent policy reviews are in full swing for many RPs at the moment, as is the drafting of rent increase letters and notices so this announcement provides welcome certainty for the year head. Increasing rents is a technical job and getting ahead of the game with this cannot be under estimated. Every year we see issues with service of notices and the information inputted which causes significant headaches for everyone responsible for implementing the increases. From our experience the longer lead in time you give yourself, the better chance you have of complying with the legal requirements and validly increasing your rents.
If you need any advice on rent increases and/or regulation please contact Samantha Grix.
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