A consultation inviting views from social housing tenants and landlords on a proposed rent cap has been launched by the Department for Levelling Up, Housing and Communities.
Under the proposals, a cap would be placed on social housing rent increases for the coming financial year, at either 3, 5, or 7 per cent.
The cap is designed to help support the most vulnerable households that are currently facing significant cost-of-living pressures.
However, the LGA says there are concerns that a cap will impact on housing providers’ ability to provide critical services for residents and invest in new and existing homes.
In a joint statement with Kate Henderson, Chief Executive of the National Housing Federation, Cllr James Jamieson, LGA Chairman, said: “Councils and not-for-profit housing associations are very concerned about the impact rising living costs are having on social housing residents.
“Housing providers have been carefully considering their approach to next year’s rents and will do all they can to keep increases low where possible.
“Decisions on the level of rent increases for tenants need to be made by housing providers within the existing government rent policy commitment, ensuring that there is a careful balance between affordability for tenants and investment in the homes that they live in.
“If the Government does take forward a lower cap, then it should provide additional funding for 2023/24 and for future years so that housing providers can continue to safeguard services and meet the country’s future housing needs.”