The Department for Communities has confirmed a 7% rise in Housing Executive rents from April.
In a statement on Tuesday, the Department said the move was in response to the Housing Executive’s annual request for a rent increase.
The 7% rent increase for 2023 and 2024 will come into effect from April 4th. The increase will be an additional £4.86 per week, meaning the average weekly rent for tenants will rise from £69.49 to £74.35.
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The move comes just over a year after Northern Ireland's then Communities Minister Deirdre Hargey announced a freeze in Housing Executive rents in order to take pressure off homes and support residents in the face of the cost of living crisis.
At the time Ms Hargey said her priority was to "support people, particularly the most vulnerable, who are facing soaring fuel and household bills".
Rent pays for the housing services provided by the Housing Executive. This below-inflation increase will provide funding for essential maintenance, improvements and investment while also keeping the rent affordable for tenants.
A DfC spokesperson added: "Tenant affordability was the Department’s key consideration. 78% of Housing Executive tenants are currently in receipt of housing assistance. These tenants will be protected from the impact of the rent increase.
"For the other 22% of tenants (with no entitlement or a minimal entitlement to assistance with housing costs), the impact of the increase was modelled across a range of household scenarios all of which demonstrated its affordability.
"The Housing Executive is offering support to tenants through its Financial Inclusion Team ,which helps tenants by providing advice on benefits, budgeting and signposting to a range of sources of financial support.
"Housing Executive rent levels are considered every year by taking into account a wide range of factors, including: inflation; projected running costs; spending requirements and affordability."
Approximately 78% of Housing Executive tenants receive full or partial Housing Benefit support or Universal Credit towards their rent. Each tenant will receive a letter over the next week detailing their new rent level.
Grainia Long, Chief Executive, said; “We are acutely aware of the financial pressures being faced by our tenants. Working alongside the Department for Communities, we wanted to ensure that the impact on tenants’ affordability was kept to a minimum, while at the same time making sure that we can continue to invest in our homes and provide tenant services.
“Rents pay for services to tenants. The decision to increase rents ensures ongoing investment in our tenants’ homes and continued provision of customer and neighbourhood services.
“A further rent freeze would have amounted to a cut in services, whereas the new rent level will improve our ability to invest in our stock and work to keep our tenants safe, warm and dry, and ensure sustainable levels of pay for our staff. It has also taken into the account the rate of inflation and rising costs for goods and materials.”
She added: “Last year we invested over £190m in maintaining and improving our homes and we are on track to increase this investment beyond £200m this year. The rent increase will be invested straight back into our houses and our customer services.
“Over recent months we have grown our Financial Inclusion Team to provide benefit checks to make sure tenants are receiving everything they are entitled to and to help resolve complex benefits issues. The team will advise tenants on other specialist sources of debt advice and other sources of financial support.
“We encourage any tenant who is having difficulty paying their rent, to immediately contact us for assistance and advice.”
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