The Government has opened a consultation on a proposal to introduce a cap on rents in the social housing sector and although they refer to a ārentā cap, almshouse charities who are Registered Providers of Social Housing (RPs) would also be effected.
The consultation has been launched in light of the cost-of-living crisis which has seen inflation rise significantly, with the prediction for September to be over 10%. Almshouse RPs are normally allowed to raise their WMCs by CPI + 1% each year, this would likely result in an increase of at least 11%. Combined with increases in other bills this is not seen as a viable option and so a reduced cap is being recommended for the coming year.
The consultation proposes a number of options for the cap:
- Do nothing and allow increases of CPI +1%
- Cap at 3%
- Cap at 5%
- Cap at 7%
The Government has noted that it would prefer a 5% cap to allow RPs to continue their normal operations without causing further financial hardship on residents. In light of current pressures, The Almshouse Association is likely to recommend that all members, including non-RPs, use the agreed cap when setting WMC for the coming year.
The Almshouse Association is considering the proposals and will be responding to the consultation. We would welcome the input of our members in this process. Members who wish to provide feedback can do so by writing to Jack Baldan via jackbaldan@almshouses.org.
The consultation is open until 11:45pm on 12 October 2022, however, if you would like to contribute to the Associationās submission, please do so by Friday 30th September
Details on the consultation and resources on the proposal can be found here.Ā
posted 31 August 2022