London Daily

Focus on the big picture.
Saturday, Jun 21, 2025

Social housing rent rises to be capped in England next year

Social housing rent rises to be capped in England next year

Landlords warn cap will mean less investment in housing stock while charity calls on tenants to refuse to pay any rent increases
Rent rises for millions of people living in social housing will be capped next year, the government has announced, but tenants are calling for a full freeze and threatening not to pay increases.

Citing the cost of living crisis, Greg Clark, the housing secretary, said social landlords would be limited to an annual increase of between 3% and 7%, with the exact figure to be set after a consultation, which will also ask if the temporary cap should be in place for one or two years.

At present, social housing landlords can increase rents by consumer price inflation plus 1% which meant tenants were facing the possibility of an 11% jump in rent bills. Such a rise would have also hit the taxpayer as the majority of social housing tenants use benefits to meet their rent.

“We must protect the most vulnerable households in these exceptional circumstances during the year ahead,” said Clarke. “Putting a cap on rent increases for social tenants offers security and stability to families across England. We know many people are worried about the months ahead. We want to hear from landlords and social tenants on how we can make this work and support the people that need it most.”

But tenants warned the cap was inadequate, in part because it would not apply to rises in service charges, and called instead for a complete freeze.

“Between 3% and 7% is not enough,” said Suzanne Muna, the secretary of the Social Housing Action Campaign, who stressed tenants were also facing rising food, fuel and other costs. “This would still be a huge problem for tenants who can’t absorb 3%.”

The campaign said that even before the Covid pandemic and the cost of living crisis, rent arrears among housing association tenants and residents were building at a steady rate of about 10% annually. Between March 2018 and March 2021, rent arrears grew from £591m to £704m. It is calling on tenants to refuse to pay any increases in rent.

Private landlords have been increasing rents at 4.7% a year overall and at 8.3% on new lets, according to annual data to July from Hamptons, the estate agency.

Social landlords said the cap would mean tens of billions of pounds less would now be invested in social housing stock at a time of rising public concern about safety and conditions in some estates. The cost of building new homes rose 12% in the year to June and repair costs are up 14%, they said.

The National Housing Federation and the Local Government Association said: “We are very concerned that a new cap on social housing rent increases will significantly impact on housing providers’ ability to provide critical services for residents and invest in new and existing homes.”

They said if rent rises are capped further government should provide funding to mitigate losses.

“To maintain and improve existing residents’ homes, as well as continuing to build much needed new affordable homes, significant investment each year is essential,” said Geeta Nanda, the chief executive of the Metropolitan Thames Valley housing association and chair of the G15 group of social landlords.

“Rental income is critical to supporting this work. Housing associations have already seen costs for critical materials to deliver repairs and maintenance increase by as much as 16.8% this year, and the cost of constructing new homes has grown by more than 11% as well.”
Newsletter

Related Articles

0:00
0:00
Close
Political Turmoil Resurfaces in Belgium Amid Economic Concerns
Fed policymakers divided on timing of interest rate cuts
Trump signals imminent agreement with Harvard University
Inheritance tax referendum alarms Swiss billionaire community
Japan cancels bilateral security meeting amid US defence demands
AI skeptic Emily Bender warns that ‘the emperor has no clothes’
Israel Confirms Assassination of Quds Force Commander in Tehran
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
FBI and Senate Investigate Allegations of Chinese Plot to Influence the 2020 Election in Biden’s Favor Using Fake U.S. Driver’s Licenses
Vietnam Emerges as Luxury Yacht Destination for Ultra‑Rich
Plans to Sell Dutch Embassy in Bangkok Face Local Opposition
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump's $5 Million 'Trump Card' Visa Program Draws Nearly 70,000 Applicants
DGCA Finds No Major Safety Concerns in Air India's Boeing 787 Fleet
Airlines Reroute Flights Amid Expanding Middle East Conflict Zones
Elon Musk's xAI Seeks $9.3 Billion in Funding Amid AI Expansion
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Taiwan Imposes Export Ban on Chips to Huawei and SMIC
Israel has just announced plans to strike Tehran again, and in response, Trump has urged people to evacuate
Netanyahu Signals Potential Regime Change in Iran
Juncker Criticizes EU Inaction on Trump Tariffs
EU Proposes Ban on New Russian Gas Contracts
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
Energy Infrastructure Becomes War Zone in Middle East
UK Home Secretary Apologizes Over Child Grooming Failures
Trump Organization Launches 5G Mobile Network and Golden Handset
Towcester Hosts 2025 English Greyhound Derby Amid Industry Scrutiny
Gary Oldman and David Beckham Knighted in King's Birthday Honours
Over 30,000 Lightning Strikes Recorded Across UK During Overnight Storms
Princess of Wales Returns to Public Duties at Trooping the Colour
Red Arrows Use Sustainable Fuel in Historic Trooping the Colour Flypast
Former Welsh First Minister Addresses Unionist Concerns Over Irish Language
Iran Signals Openness to Nuclear Negotiations Amid Ongoing Regional Tensions
France Bars Israeli Arms Companies from Paris Defense Expo
King Charles Leads Tribute to Air India Crash Victims at Trooping the Colour
Jack Pitchford Embarks on 200-Mile Walk to Support Stem Cell Charity
Surrey Hikers Take on Challenge of Climbing 11 Peaks in a Single Day
UK Deploys RAF Jets to Middle East Amid Israel-Iran Tensions
Two Skydivers Die in 'Tragic Accident' at Devon Airfield
Sainsbury's and Morrisons Accused of Displaying Prohibited Tobacco Ads
UK Launches National Inquiry into Grooming Gangs
Families Seek Closure After Air India Crash
Gold Emerges as Global Safe Haven Amid Uncertainty
Trump Reports $57 Million Earnings from Crypto Venture
Trump's Military Parade Sparks Concerns Over Authoritarianism
×