Social housing

[Goldwhisper]

We are living in social housing that is let out by a small village company. We received a letter stating our rent would be increasing from next month to x amount which works out to be more than a 7% increase from what it currently is. I’ve queried the rise being over the 7% rent increase cap and have been told that ‘rent flexibility level’ added to formula rent is allowed to go above the cap. Seems off to me but I can’t find anything on the gov website that specifically says it has to be within the cap. https://www.gov.uk/government/publications/direction-on-the-rent-standard-from-1-april-2020/policy-statement-on-rents-for-social-housing

Any advice would be appreciated.

They appear to be wrong unless you are in one of the categories of accommodation that is exempt. You have linked to the 2020 guidance. Refer them to the 2023 Rent Standard which can be found at Rent Standard - April 2023 (accessible version) - GOV.UK (www.gov.uk). The sections on social rent, fair rent and affordable rent are all clear that rents cannot increase by more than 7%, even if the current rent is below the rent flexibility level. Assuming they are a registered provider, they must comply with this standard.

@prh47bridge Thank you for that. The only thing that makes me wary is they don’t specifically state that formula rent plus rent flexibility level cannot exceed the 7% cap as far as I can see. It seems obvious as they mention the cap a lot but just can’t see a clause that confirms it in terms of rent flexibility level on top of formula rent. 😤

Try the CAB. They may be able to help you.

See, for example:

3.5. For a rent period that begins in the 12 months from 1 April 2023 to 31 March 2024 the weekly rent of any existing tenant may not be increased by more than:

• CPI + 1% in any year; or
• if the tenant’s rent exceeds the rent flexibility level, CPI in any year,

subject to such weekly rents not increasing by more than 7% in any year.

That means that, if you are below the rent flexibility level, they can increase your rent by CPI + 1% provided that is less than 7%. If CPI + 1% is more than 7%, the rent can only go up by 7%. Clause 3.7 says the same for tenancies subject to fair rent protection. Clause 3.12 says the same for affordable rent housing.

do you have a combination of rent and service charge

@Whattheflipflap No service charge, just rent

I spoke with shelter.org as I’ve tried a few times to speak to my local CAB without being able to get through. They’ve advised that:
However housing providers – social landlords included- do have flexibility to set rents at up to 5% above 7% formula rent (10% for supported housing).

However, providers (your housing association) need to ensure that there is a clear rationale for doing so which takes into account local circumstances and affordability.

So in answer to your question, yes your landlord may be able to increase your rent to 8.8% as per

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