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English regulator launches consultation on five-year Rent Standard
The Regulator of Social Housing (RSH) has launched a 12-week consultation seeking views on its new five-year Rent Standard.
In February the government outlined plans that would see social housing rents rise by the Consumer Price Index measure of inflation plus 1% for five years from 2020.
The proposals, which will take effect in April 2020, will apply to councils and housing associations, and mark the end to four years of annual 1% rent reductions for social landlords.
As part of the changes, the RSH has now published a new draft Rent Standard that outlines the rules around the management and setting of a new five-year rent settlement.
The consultation will be for registered providers, local authorities, tenants, lenders and other stakeholders with an interest in social housing to comment on the draft document, with the consultation to end on 30 July.
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Included in the draft standard are details on rules around how to set social rent and affordable rent, as well as on the movement between different types of rent.
The standard also states that private registered providers may be granted exemption from the Rent Standard, if the regulator feels that complying with the standard jeopardises its financial viability.
The Rent Standard will also include “rent flexibilities”, with registered providers able to set 10% of formula rent added if the accommodation is supported housing, and 5% if it is not supported housing.
This allows providers discretion over rent for specific properties, taking into account the local circumstances, the regulator said.
Fiona MacGregor, chief executive of the RSH, said: “This consultation focuses on whether we have appropriately reflected the government’s direction to us. The direction itself has previously been consulted on by government.
“Our aim is to ensure that the setting and management of rents is clear and easy to understand for all registered providers of social housing.
“The long-term rent settlement should help provide a stable financial environment for the social housing sector to make the best possible use of its resources in supporting the delivery of new homes and effectively managing and maintaining properties, while protecting the interests of social housing tenants.”
