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Above-inflation rents to finance housing deficit
Labour’s about to shift cost of new housing onto tenants, writes MARTIN WICKS arguing instead for cancelling the councils' HRA debt

THE government is consulting on the introduction of a new rent policy from April 2026. It runs until 11.45pm on December 23 2024.

The government is consulting on rent policy for council and housing association homes for 2025/26. It is proposing that a rent formula of a maximum of CPI+1 per cent for five years be introduced, although it is prepared to consider it for up to 10 years. Housing Associations and some councils will press for 10 years. This was the Tory government’s policy introduced in 2020, for five years.

What is the argument of the government for the formula of above-inflation rent increases for some of the poorest people in the country? Essentially councils and housing associations don’t have sufficient money to deliver new homes.

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