Government confirms one year rent settlement extension

The government has recently confirmed that, alongside the introduction of a new consumer regulation regime, the current rent formula will be extended for another year into 2025/26. This means that in April 2025, rents will be permitted to rise by the Consumer Price Index (CPI) taken from September 2024, plus an additional 1.0%.

You can see the government’s announcements here.


Tracy Harrison, Chief Executive, Northern Housing Consortium, said:

“Government’s announcement that the existing rent formula has been extended into 2025/26 will bring some reassurance for our members. This follows a long period of uncertainty as to how rent policy will change and many changes to the rent formula over recent years.

“However in the context of 30-year business plans, simply extending the current formula by another year does not give the certainty needed to plan much-needed investments in improving homes, decarbonising stock, and building new homes. Local authorities are also living with the consequences of year-to-year finance settlements.

“We need Government to agree to announce a long-term rent settlement that will enable housing providers to tackle the housing challenges communities face across the North.”