Jeremy Hunt reveals 1 million tenants to face 7% rise in rents – adding £340 a year to bills in Autumn Statement

OVER a million social housing tenants will face rent increases of up to 7% next year, Chancellor Jeremy Hunt revealed today.

Mr Hunt revealed in the Autumn Statement that there would be an increase in the amount that social rents can be hiked in 2023 – adding up to £340 a year to bills.

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Under previous plans rents would have gone up by 11%, but now households will save around £200 a year with the 7% rise.

Last year, they increased by 1.6%.

Mr Hunt said earlier today: “Around four million families live in the social rented sector – almost one fifth of households in England.

“Their rents are set at 1% above the September inflation rate which means that on current plans they are set to see rent hikes next year of up to 11%.

“For many, that would clearly be unaffordable so today I can announce that this government will cap the increase in social rents at a maximum of 7% in 2023-24.”

Alongside the increase in social housing rents, the Chancellor also announced:

Many social housing tenants receive full housing benefits from the government, which means the increase in rents will be picked up taxpayers.

However, around 30% of social tenants pay full rents and will be hit by the increase in full because they’re not eligible for support.

That amounts to over 1,300,000 tenants who are facing the 7% hike.

Despite this, Kate Henderson, chief executive of the National Housing Federation, said the trade association supported the 7% rise.

“This is rightly well below CPI+1%, the standard formula for rent setting for social housing, while ensuring housing providers can continue to deliver their core services for residents now and into the future.”

However, documents published alongside the statement show supported housing providers will be exempt from the rent cap and will continue to be allowed to increase rents by 10.1% plus 1% from April, reports Inside Housing.

Supported housing is accommodation for people who need support with everyday tasks.

This might mean someone who has multiple or complex needs or is disabled.

This post first appeared on thesun.co.uk