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Public sector rents to rise by 5 per cent

Rent for public sector houses is to rise

Rent for public sector houses is to rise

The government has announced that the annual increase in public sector rents of 5 per cent.

According to the Department of Social Care, the average rent rise for general housing will be less than £4 per week, with a typical three-bed house paying £85 per week.

The average rise for sheltered housing will be just over £3 per week, and the average rent for a sheltered unit being £60 per week.

Households on income-related benefits (about a quarter of the total) will be largely unaffected.

The rises will take effect from April 1.

The increased rents will still be significantly less than the cost of the equivalent private sector housing in the island.

The Minister for Social Care Hon Chris Robertshaw MHK said: ‘The rent increase of 5 per cent this year is to appreciate the impact of significant increases over the last two years, whilst accepting there is a need to reduce the financial impact on the tax payer of public sector housing provision.

‘As previously announced, my department will be progressing with means-tested rents from 2015.

‘This will provide a mechanism for an equitable rent that reflects both the property and a tenant’s ability to pay.’

The rise is above the rate of inflation. The most up to date RPI measure of inflation shows a rate of 2.5 per cent.

Click here to read another recent story about public sector rents.

Last year, average public sector rents went up by 11.8 per cent on average.

What do you think of the rent rise?

Let us know by commenting here or emailing opinions@newsiom.co.im

 

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