Tenants in social housing will have rent increases capped from 2019.
The new system would see rent increase annually by at least 2.5% and no more than 4%.
Social housing rents increase annually by RPI+0.75%. That will stay, but the level of RPI will be restricted to between 1.75% and 3.25%.
It follows the decision by Andium to hold off its increase this month because the Retail Price Index – which social housing rent is currently based on – rose more than expected.
If it had gone ahead, tenants would have faced an increase of 5.25%.
“I am pleased that, with the agreement of Andium Homes and the Treasury Minister, we have been able to introduce a cap on the level at which rents can be raised.
It was clear that with inflation at a higher rate than was expected this year, that the old system would not be fair for tenants who would have seen a 5.25% rise in rents.
“In line with the government’s strategic priorities, work will continue next year with a new Housing Policy Development Board to examine further work we can undertake to review our rent policies.” – Senator Sam Mezec, Housing Minister.
The date for rent adjustments has now been moved to the 1st of January, rather than 1st of October.
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