Housing associations are focused on how to deliver more affordable homes for rent. Financing development hinges on a stable rent roll. The Government has promised clarity on rent policy beyond 2020. Options under discussion in the sector include rent freedom, which could unlock the potential for higher rents to support the development of more homes for households in need. This paper explores the potential for this to work.
In theory, within the social housing sector at least 88% of general needs homes could have increased rent without exceeding Local Housing Allowance (LHA) caps. But past differences between national social housing rent policy and local growth in market rents means that the scope for increase varies hugely across England. And hitting up against the LHA caps could bring housing even closer to the politics of welfare. Rents must be affordable to households both in and out of employment.
Source : Savills