Limit on annual rent increases from April 2023 - March 2024
Information about annual rent increases limit from April 2023
Applies to England
Documents
Details
1. Annual adjustment of formula rent
1.1 In September each year the annual Consumer Price Index figure is set which is used to establish the limit on annual rent increases for social housing. This document contains adjusted tables to help providers ensure that they use the correct annual percentage to inflate their rent. It also provides the additional data needed to work out formula rent for new properties.
1.2 Full guidance on how to calculate formula rents can be found in the Policy Statement on Rents for Social Housing (Policy Statement) which is published on the Department for Levelling Up, Housing and Communities website. The Policy Statement sets out the government’s policy on rents, including the rent ceiling in place from 1 April 2023 to 31 March 2024.
2. Formula rent inflation
2.1 Subject to the Rent Cap requirements explained in paragraph 3 below, the following tables must be used to adjust the 2000-01 formula rent to 2023-24 levels.
Table 1: Formula rent inflation
| Year | Inflation | Additional | Total |
|---|---|---|---|
| 2001-02 | 3.3% | 1.0% | 4.3% |
| 2002-03 | 1.7% | 0.5% | 2.2% |
| 2003-04 | 1.7% | 0.5% | 2.2% |
| 2004-05 | 2.8% | 0.5% | 3.3% |
| 2005-06 | 3.1% | 0.5% | 3.6% |
| 2006-07 | 2.7% | 0.5% | 3.2% |
| 2007-08 | 3.6% | 0.5% | 4.1% |
| 2008-09 | 3.9% | 0.5% | 4.4% |
| 2009-10 | 5.0% | 0.5% | 5.5% |
| 2010-11 | -1.4% | 0.5% | -0.9% |
| 2011-12 | 4.6% | 0.5% | 5.1% |
| 2012-13 | 5.6% | 0.5% | 6.1% |
| 2013-14 | 2.6% | 0.5% | 3.1% |
| 2014-15 | 3.2% | 0.5% | 3.7% |
| 2015-16 | 1.2% | 1.0% | 2.2% |
| 2016-17 | N/A | N/A | -1.0% |
| 2017-18 | N/A | N/A | -1.0% |
| 2018-19 | N/A | N/A | -1.0% |
| 2019-20 | N/A | N/A | -1.0% |
| 2020-21 | 1.7% | 1.0% | 2.7% |
| 2021-22 | 0.5% | 1.0% | 1.5% |
| 2022-23 | 3.1% | 1.0% | 4.1% |
| 2023-24 | 10.1% | 1.0% | 11.1% |
2.2 Different figures applied for the period from 2016-17 to 2019-20 where the type of property concerned was covered by a full or partial exception from the social rent requirements of the Welfare Reform and Work Act 2016.
Table 2: Supported housing formula rent inflation
| Year | Inflation | Additional | Total |
|---|---|---|---|
| 2016-17 | -0.1% | 1.0% | 0.9% |
| 2017-18 | N/A | N/A | -1.0% |
| 2018-19 | N/A | N/A | -1.0% |
| 2019-20 | N/A | N/A | -1.0% |
2.3 The above figures apply to supported housing for the period between 2016-17 to 2019-20 (except domestic violence refuge accommodation, as this is covered in table 3 below).
Table 3: Domestic violence, alms-house, co-operative or fully mutual and community land trust formula rent inflation
| Year | Inflation | Additional | Total |
|---|---|---|---|
| 2016-17 | -0.1% | 1.0% | 0.9% |
| 2017-18 | 1.0% | 1.0% | 2.0% |
| 2018-19 | 3.0% | 1.0% | 4.0% |
| 2019-20 | 2.4% | 1.0% | 3.4% |
2.4 The above figures apply to domestic violence refuge accommodation; alms-house accommodation; accommodation provided by a co-operative housing association or a fully mutual housing association; and accommodation provided by a community land trust between 2016-17 to 2019-20.
3. Rent caps
Table 4: Formula rent caps for 2023-24
| Number of bedrooms | Rent cap |
|---|---|
| 1 and bedsits | £173.79 |
| 2 | £184.00 |
| 3 | £194.22 |
| 4 | £204.43 |
| 5 | £214.66 |
| 6 or more | £224.87 |