Over the last four years the government has imposed a 1% reduction in rent each year for social and affordable housing customers.
However, in October 2017 the Government announced a new Rent Standard that will see social and affordable rents return to having an increase of up to CPI+1% for at least five years. CPI is the Consumer Price Index which measures the average change in the prices of goods and services (known as inflation) over a period of time.
As a housing association, we must comply with the new Rent Standard which will come into force on 1 April 2020. The Rent Standard explains to housing associations how rents should be set, including the maximum weekly rent that can be charged.
The Radian Group Board has made the decision to apply a CPI+1% rent increase across all our eligible tenancies. Applying the increase across all eligible tenancies ensures we provide a fair approach to all our customers.
The Board have decided to set the increase at this level to ensure that we have financial certainty to continue managing and maintaining homes to a high standard, delivering excellent customer service, investing in our communities, tackling homelessness and delivering more than 10,000 new homes of all types and tenures over the next 10 years.
We will continue to consider the affordability of our rents carefully when they are set each year to make sure we continue to provide homes that are affordable and good value for money.
To answer any immediate questions you may have about your rent, please take a look at our FAQs which can be found here.
Notices of rent will be sent in due course which will set out what rent and any service charges will be for the next year.