Social Rent –7% restriction on rent increases for social housing tenancies in 2023 Here at Support Solutions UK, we like to keep our followers and clients up to date with latest industry news. Our December briefing takes a look at Social Rent and the Regulator's recent decision to apply a 7% restriction on rent increases for social housing tenancies in 2023. Importantly supported housing is exempt from the 7% rent increase and can still apply CPI + 1%, which is 11.1% in total. What is Social Rent and how does it work? Around four million families live in the social rented sector. This is almost one-fifth of households in England. Social housing is provided by either housing associations (not-for-profit organisations that own, let, and manage rented housing) or the local council. As a social tenant, you rent your home from the housing association or council, who act as the landlord. Social housing aims to be more affordable than private renting and provide a more secure, long-term tenancy. Social homes are the only type of housing where rents are linked to local incomes, making these the most affordable homes in most areas across the country. Rents for social homes are significantly lower than private rents. Rent increases are also limited by the government, which means homes should stay affordable long-term so people aren’t priced out of their communities by rising rents. Social housing should be there for anyone who needs it. At present, the law states who is entitled to social housing and should get preference on the waiting list. But councils have lots of flexibility on who qualifies locally and social landlords can refuse to let to people if they so choose. People in social housing usually have secure tenancies, giving them greater protection from eviction and enhanced rights compared to those renting privately. They provide the foundation people need to get on in life, meaning families can put down roots, plan for the future and make their house a home. How is Social Rent set? In 2019, the government set a rent policy for social housing that would permit rents to increase by up to CPI plus 1 percentage point (‘CPI+1%’) per annum, and made clear its intention to leave this policy in place until 2025. We are however living through exceptional times and when the current rent policy was set in 2019, inflation was forecast to be around 2% in 2022 and 2023. In July 2022, CPI was 10.1%. If CPI remained at or above this level in September, this would permit social housing rent increases from 1 April 2023 to 31 March 2024 of 11.1% or more. This is much higher than expected rate of inflation and is already placing considerable pressure on many households, including those living in social housing. Registered Providers of social housing (‘Registered Providers’) were obviously concerned about these pressures on their residents and came together on how the sector should respond. In the face of these exceptional challenges, the government thought that there was a strong case for making a temporary amendment to the CPI+1% policy for 2023/24 in order to provide a backstop of protection for social housing tenants from significant nominal-terms rent increases. The government decided to consult on a new Direction from the Secretary of State to the Regulator of Social Housing (‘the Regulator’) on social housing rents. This Direction would operate alongside the Direction on the Rent Standard 2019 issued on 26 February 2019 (‘the 2019 Direction’). The intention of this new Direction would require the Regulator to amend its Rent Standard so that the current CPI+1% limit on annual rent increases would be subject to a ceiling from 1 April 2023 to 31 March 2024. Registered Provider is allowed to implement. Registered Providers would be permitted to increase rents by 5% or CPI+1%, whichever is the lower. However, within this consultation, we are seeking views on 3%, 5% and 7% as ceiling options, and we are also 7% Social Rent Cap 2023/24 The Department for Levelling Up, Housing and Communities (DLUHC) had floated that social rent increases could be capped as low as 3%, however, setting the rent cap at 7% will come as a huge relief to registered providers and prevents a potentially apocalyptic scenario for some.
Here at Support Solutions UK, we like to keep our followers and clients up to date with the latest industry news.
This month our briefing will look at the social housing regulator and their demand for more two-way engagement with tenants to better understand their needs and reduce the risk of undiscovered tenant deaths.
Reference will be made to the Housing Proactive solution that one of our longstanding clients (Alertacall) has designed.
Why are the social housing regulator demanding better two-way engagement with customers?
Social housing tenants deserve homes that are safe and of a decent standard. It is vitally important that tenants receive quality services from their landlords and they are able to deliver what tenants need.
The regulator has a vision for consumer regulation which details the following points;
- Landlords must maintain tenants’ homes so that they are safe and of a decent standard and that landlords provide a quality service.
- Where things go wrong, complaints are handled effectively, and things are put right.
- The relationship between tenants and landlords is underpinned by shared expectations of fairness and respect and a shared understanding of their respective rights and responsibilities.
- Landlords demonstrate that they understand the diverse needs of the communities that they serve and their services reflect that.
- Tenants understand, use and have confidence in the recourse that they have to get problems resolved.
- Stakeholders have confidence that landlords’ commitment to their tenants is underpinned by effective consumer regulation, whether that landlord is a housing association, council or for-profit provider.
The regulator has set out three tests for the success of the new consumer regulation framework. These three tests mean that;
- It must make a meaningful difference to tenants.
- Landlords must be able to deliver its expectations.
- The regulator must be able to regulate against it.
The regulator is determined to deliver on these tests, and they continue to guide how they are approaching their implementation of proactive consumer regulation.
In taking forward new consumer regulation, the regulator has already spoken to thousands of tenants and will continue to do so to understand the issues that matter to them most.
Similarly, the regulator has spoken to landlords to find out what they are already doing to improve the homes and services they provide, as well as their engagement with, and accountability to tenants.
Are you being proactive, and do you know your tenants and their property?
Knowing your customer and property is at the top of housing providers’ agendas to help reduce a number of risks, including the growing concern around undiscovered tenant deaths.
Where this is a particular challenge is with older and other higher-needs residents. This is one group with whom being more proactive, reducing digital poverty and capturing tenant feedback to ensure tenant satisfaction is the highest priority.
How can housing providers do all this, whilst still protecting access to valuable ‘human contact’?
We have the answer – Alertacall
Founded in 2004, Alertacall is the first organisation in the world to specialise in the development of technology to improve daily contact designed to keep people independent and drive meaningful outcomes. Alertacall pioneers the principle that by increasing contact with people, in a way the customer controls, you can better understand their changing needs, make better decisions and improve their lives.
Alertacall – Housing Proactive
Housing Proactive is the newest product of Alertacall. For a small weekly fee, your residents can be provided with an easy-to-use touchscreen with 2-way messaging, repairs reporting, surveying, as well as property checks.
When you combine this with a team skilled in housing-related issues that’s available 365 days a year, Housing Proactive is the perfect tool around which to build your engagement model in sheltered, supported and general needs.
Alertacall also have an optional OKEachDay for Housing service that can help you confirm occupancy, exchange information and offer high-quality human contact every day of the year.
What are the advantages of the Alertacall Housing Proactive product?
There are many advantages of the Alertacall Housing Proactive product. Let’s take a look at these in more detail.
| Advantage | Further Info |
| Customers can contact you easily
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By writing a message or recording one using their voice. This can be sent to a housing officer, help desk or both.
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| See live video of visitors
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Talk to them before allowing them access from the comfort of a chair. Safer and easier for customers – who can also see any missed callers. (Compatible IP door entry required)
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| Alertacall team is available 365 days a year
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To allow customers to notify the team that they are going away and to relay housing-related info or to change settings.
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| Reporting repairs is easy
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Give the option of a call with your repairs team or take the customer through multiple choice questions with intuitive icons to select.
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| Connect customers using video calls
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They can make these to each other and set their own approved caller list. Your team can also call customers from their own smartphone or computer. (This is an additional cost option)
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| Reporting ASB is easy
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Alertacall give the option of a call with your team members or take the customer through multiple choice questions with intuitive icons to select.
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| Keep customers informed
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Through the use of text and picture messages which you can send to individuals, groups or areas you define. These can also be made to ‘popup’ when the OKEachDay button is pressed.
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| Check rent, pay bills and self-service
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By integrating your own self-service portal or app on to our touchscreen, instantly boosting your digital engagement aspirations.
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| Listen and learn about your customer’s needs
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By broadcasting surveys with multiple choice questions. Customers can be prompted to complete a survey after pressing the OKEachDay button
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Alertacall product visual
Here is an image of the alertacall product. This image should give you a tangible look at the product and the layout prospective clients can expect
For more information on Housing Proactive and how Support Solutions UK can assist you with its funding please contact us.
References
https://www.alertacall.com/housing-proactive/
https://www.alertacall.com/about-us/
https://www.gov.uk/government/consultations/revised-directions-to-regulator-of-social-housing-tenant-involvement-and-mutual-exchange/implementing-the-new-consumer-regulatory-regime-directions-to-the-social-housing-reg
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The Support Solutions UK Team