Government reviews rent increase cap for social housing tenants during cost of living crisis

Government plans to cap rents for social housing tenants in England next year to ease some of the pain of the cost of living crisis.

Rent increases for people living in social housing could be capped at 3% over the next next financial year from April, the leveling said the department.

But council bosses and housing association heads said they were "very concerned" that a cap on rents would hamper their own ability to meet soaring costs and invest in new homes.

The Department of Leveling, Housing and of Communities (DLUHC) said it had launched a consultation on a rent cap - insisting that the most vulnerable households 'must' be protected from huge hikes.

The cap could see annual rents capped at 3, 5 or 7% from April 2023 to control tenant costs - amid warnings that inflation could hit 22% next year if housing prices spike gas does not decrease.

Currently, social landlords can increase rents based on the consumer price index (CPI) plus one percentage point. The CPI is 10.1%, which means it could rise by at least 11.1% in September.

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A cap of 5% would save tenants an average of £300 a year, compared to the scenario of increasing rents in line with inflation plus one per cent, according to the DLUHC.

Housing Secretary Greg Clark said the government "must protect the most vulnerable homes...