Rent caps in England and Wales confirmed

As housing associations in Scotland await confirmation of the Scottish Government’s plans on rent increases for 23-24, rent caps in both England and Wales have now been confirmed.  

Housing associations in Wales will be permitted to raise rents by up to 6.5%, while the UK Chancellor’s Autumn Statement saw confirmation that social rent rises in England will be capped at 7%. The 7% limit is expected to generate an overall saving to government of around £630 million over 5 years. 

In Scotland, SFHA continues its work in response to the Cost of Living (Tenant Protection) (Scotland) Act 2022, which set a cap of 0% for both private and social rent increases up until 31 March 2023, when the caps can be extended, ended or varied. Following an SFHA-supported amendment to the legislation, the Scottish Government must confirm by 14 January 2023 whether it proposes to retain the rent cap at 0% for the social sector, increase it or remove it entirely. 

This week, SFHA’s CEO Sally Thomas met Cabinet Secretary Shona Robison to press for an early decision on the matter, to give members as much certainty as possible. We expect to meet the Cabinet Secretary again within the next fortnight and will continue to work closely with members to find a solution to this situation which works for housing associations, tenants and government.