Rent setting has in recent years been subject to increasing focus and scrutiny from the Regulator of Social Housing (RSH), with several registered providers (RPs) receiving a downgrade in their governance rating for failing to charge tenants the correct rents, applying incorrect annual increases or reductions or for having poor internal controls leading to breaches. The RSH has also been concerned that even small mistakes can be compounded over time leading to staggering costs to put right.

The government has now published the following consultation on a new five-year social housing rent settlement, with the intention to increase rents in line with the consumer price index measure of inflation plus 1%, as is the case under the existing settlement that expires in April 2026. Consequently, providers will be expected to provide even greater assurance that rent setting is based on sound policy and procedures, tightly controlled and tenants are being charged correct amounts and rents are being increased in line with statutory guidance.