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Rents frozen for 85,000 social homes in Northern Ireland
Rents for Northern Ireland Housing Executive (NIHE) tenants are set to be frozen because of the rising cost of living, the government has said.
Communities minister Deirdre Hargey announced on Wednesday that there will be no increase in rents for all social housing tenants living in the circa 85,000 homes managed by the NIHE.
Ms Hargey urged housing associations to follow suit, as the freeze applies only to the Housing Executive.
“As communities minister my priority is to support people, particularly the most vulnerable, who are facing soaring fuel and household bills.
“So today I am announcing that I will freeze Housing Executive rent levels for 2022-23 so as to not place any further financial burden on individuals and families trying hard each day to make ends meet,” she said.
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The minister added that tenants “need security” and that a freeze in their rents will provide a “bit of stability on an important housing cost in an uncertain climate”.
The decision comes amid a cost of living crisis, with households grappling with soaring food prices, as well as huge energy bills.
The Consumer Price Index (CPI), which measures the rising cost of living, rose to 5.5% in January and is expected to hit 8% in April.
The news from Northern Ireland follows an announcement by Edinburgh Council in January that it would also be freezing rents.
It made the decision based on the rising cost of living and underspending on construction throughout the pandemic, meaning it does not need the money from the rent increase now.
Since 2020, social landlords in England have been able to increase rents by the rate of CPI plus 1% each year.
As CPI was 3.1% in September, 4.1% is the maximum rate by which rents in England can increase from this April, although landlords are not required to do so.
Hammersmith and Fulham Council approved a 1.5% increase earlier this month, “recognising the cost of living pressures faced by tenants”.
But it is expected that many social landlords in England will implement a 4.1% hike.
Thinktank the Resolution Foundation warned in December that almost five million households living in social rented homes could see their rent increase by an average of £202 next year.
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