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Daily Mirror
Daily Mirror
Business
Sam Barker

Millions of tenants could save £300 under plan to cap rent - but not everyone will benefit

Renters in social housing could pay hundreds of pounds less next year under Government plans to cap their rent.

However, the current plans exclude private renters entirely.

Today housing secretary Greg Clark said social landlords could only increase rents by between 3% and 7% next year.

Normally social landlords can hike rents by consumer price inflation plus 1% every year.

Inflation is now 10.1%, meaning social tenants could see rent rises of 11.1%next year without a cap.

That figure could be even higher as inflation could rise more. Bank Goldman Sachs thinks it could hit 22% this year.

The proposed rent cap would be temporary and would apply from April 1 2023 to March 31 2024.

The Government is now consulting on the exact details of any cap.

Caps of 3%, 5% and 7% are on the table.

The Government says caps could save social housing tenants £300 a year on average.

Mr Clark said: "We must protect the most vulnerable households in these exceptional circumstances during the year ahead.

"Putting a cap on rent increases for social tenants offers security and stability to families across England."

But critics called for social rents to be frozen, and for private renters to get their own help with housing costs too.

On Twitter, Generation Rent deputy director Dan Wilson Craw said: "Private tenants are more likely to be in fuel poverty than social tenants - if the Government wants take action on rents to protect the most vulnerable it can't allow private renters to face above inflation rent hikes."

Earlier this year The Mirror reported that councils evicted more than 2,500 households over the last three years for not paying rent - including many during the financial pressures of the Covid-19 pandemic.

More than 2,575 households have been evicted from social housing this way since 2019, according to Freedom of Information (FOI) requests submitted by The Mirror.

The council that evicted the most households for not paying enough rent in a single year was Sheffield City Council, with 140 evictions in the 2019/20 year.

These FOI requests covered 154 councils representing all major cities and towns across the UK.

But the true eviction figure will be even higher, as 38 councils never responded and smaller councils were not included.

Not only this, but many councils have sold off their council houses to housing associations - private companies not covered by FOI requests.

Renters' union ACORN said: "2,500 households evicted during the worst of the pandemic by social housing providers is a shocking figure and represents thousands of families and individuals facing homelessness and destitution.

"ACORN trained hundreds of people during the pandemic to defend against evictions as we recognised that more than ever, access to a safe, secure home could mean the difference between life of death, health and illness."

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