Guidance on Rents for Social Housing - Briefing Paper

In October 2013 the government published a consultation paper on rents for social housing from 2015/16. Consultation ended on 24th December 2013. In May 2014 the government responded to the consultation and provided its final guidance on rents for social housing.

The main changes included in the guidance are:

• Moving from annual increases in weekly rents of Retail Price Index +0.5% (plus up to £2 for social rents), to increases of Consumer Price Index + 1%
• As a result, removing (from 1st April 2015) the flexibility available to landlords to increase weekly social rents each year by an additional £2, above the increase in formula rent, where the rent is below the rent flexibility level and rent cap
• Making clear that rent policy does not apply where a social tenant household has an income of at least £60,000 a year

The purpose of this briefing paper is to summarise the guidance and provide some commentary. It includes sections on:

• Introduction
• Summary
• Background
• Responses to the Consultation
• Social Rent Guidance
• Service Charges
• Affordable Rent Guidance
• Guidance on Rents for Social Tenants with High Incomes
• Implications for Housing Associations
• Reactions in the Sector
• Conclusions

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