TSA responds on guideline of rent increases for council tenants

Richard Moriarty, TSA Director of Market Development, said: "This is good news for council tenants. Concerns over Local Authority rent rises have featured in our recent National Conversation with tenants up and down the country and these have been shared with CLG.

"But about half of all social tenants have a Housing Association rather than a Local Authority as a landlord. Our regulation of Housing Association rents has for a long time been tied to the Government’s guidance on rent restructuring, which has not changed as a result of this decision. And many Housing Association rent notices for 2009/10 have already been issued in line with this guidance.

"In light of the announcement, we would remind Housing Association landlords of the guidance we issued last month stating that the rent formula permits a maximum rate of increase. It is for landlords to set their rents within this maximum taking account the impact on tenants and future tenants and landlords’ financial commitments, which include their commitments to invest and raise service delivery for the homes they currently own and their commitments to build much-needed new homes.

"We are keen to ensure broadly consistent outcomes over time for social tenants regardless of who their provider happens to be. In this light, we note that the inflation escalator used in the rent formula for next year could be much lower than this year if current inflation trends persist. We welcome the Government’s commitment to work with us in monitoring the potential impact of these developments on the guidance for rent levels that should apply in 2010/11 – both in terms of its potential impact on tenants’ bills and the viability of Housing Association business plans."

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