Letter to local authority registered providers: government rents consultation - September 2022
Published 7 September 2022
Applies to England
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Dear Chief Executive
As you will be aware, DLUHC is consulting on proposals to limit rent increases to below CPI+1% for at least 2023/24. We know that many landlords have been considering how to support their tenants as the cost of living increases, and we encourage you to respond to the consultation to provide evidence on the effect that the proposals could have on HRA finances, maintaining existing homes and services and developing new homes. Any queries about the proposals or consultation process should be raised with DLUHC.
We recognise that these proposals would have a significant, challenging effect on landlord finances. Both tenants and landlords face increasing costs and reducing real-terms incomes. They will require you to make hard choices about investment and expenditure priorities, revise your business plans and take action to maintain compliance with the regulatory standards. Although the outcome of the consultation is not yet known, it is essential that these preparations happen now. In making these decisions, the safety of tenants and delivery of essential landlord services must not be compromised. As always, if you identify any material concerns about your ability to meet the regulatory standards you should inform us immediately.
Whilst we regulate local authority registered providers’ rents, we cannot agree exemptions from the rent standard. However, local authority registered providers can apply to the Secretary of State for exemption where complying would cause the authority unavoidable and serious financial difficulty. Guidance can be found on DLUHC’s website.
We understand that changes to rents – even for a short period – will have a lasting impact on the HRA. In the short-term, however, all providers will need to identify how they can adjust to maintain their viability and support tenants in difficult times.
Yours sincerely
Fiona MacGregor
Chief Executive
Regulator of Social Housing