10-year Rent formula being calculated by Rachel Reeves

There is speculation that the Chancellor, Rt. Hon. Rachel Reeves MP, plans to introduce a 10-year formula for social rent. Media reports say this will aim to give providers more financial certainty and confidence to invest and develop their communities. The formula, if announced, would result in rents increasing annually with the rate of the Consumer Price Index (CPI) +1%

The NHC supports a longer term plan for rents, as set out in our manifesto Building the Future of Housing in the North

Our chief executive, Tracy Harrison, commented on the reports:

“These are welcome signs that government has been listening to the sector. Over the last 10 years, we have seen the rent settlement changed repeatedly – despite a previous 10-year guarantee. This has fundamentally undermined the business model of social housing providers, impacting much-needed investment in new and existing homes.

“We need a 10-year rent guarantee of Consumer Price Index (CPI) + 1% to support housing providers to unlock a new wave of investment, in both developing new homes and improving existing homes. We look forward to government’s decision on this in the autumn Budget.

“We and others have been consistently asking government to deliver a long-term financial settlement for the social housing sector, including long-term certainty over rents and future grant funding. Crucially, the sector needs to see a new Affordable Homes Programme, with the scale and flexibility to meet the North’s affordable housing challenge, as landlords plan their future developments beyond the existing programme.”