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Social Housing Rents: Revised Annual Rent Adjustment Policy

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A decision made on 16 November 2018

MINISTERIAL DECISION REFERENCE: MD-H-2018-0021

DECISION SUMMARY TITLE: Social housing rents – revised annual rent adjustment policy

DECISION SUMMARY AUTHOR:

Policy Principal

Strategic Policy, Performance and Population

IS THE DECISION SUMMARY PUBLIC OR EXEMPT?  (if exempt state clause from Code of Practice booklet and from 1st January 2015 stating the relevant article/paragraph of the Freedom of Information Law/Regulations)

Public

REPORT TITLE: Social housing rents – revised annual rent adjustment policy

REPORT AUTHOR OR NAME OF PERSON GIVING REPORT:  (if different from Decision  Summary Author)

Policy Principal

Strategic Policy, Performance and Population

IS THE REPORT PUBLIC OR EXEMPT  (if exempt state clause from Code of Practice booklet and from 1st January 2015 stating the relevant article/paragraph of the Freedom of Information Law/Regulations)

Public

DECISION AND REASON FOR THE DECISION:

The Minister for Children and Housing approved a revision to the policy for uplifts in social housing rents as set out in the attached report.

 

Following an unexpectedly high increase in the Retail Price Index in June 2018, a review of the rent adjustment policy for social housing was undertaken, including modelling the impact of various scenarios on Andium Homes’ net cash position and the return to the Treasury as Guarantor. This review has been completed and will continue to link rent adjustments to RPI with minimum and maximum uplift requirements in order to provide tenants with greater certainty in relation to adjustments in their rent.

 

RESOURCE IMPLICATIONS: The resource implications are set out in the attached written report. It is forecast that the return by Andium Homes to the States Treasury and Exchequer over three years will be as follows:

 

Year

Current £’000

Proposed £’000

Difference £’000

%

2019

30,200.9

29,673.3

527.6

1.75

2020

31,220.0

30,637.7

582.3

1.87

2021

32,250.3

31,633.5

616.8

1.91

ACTION REQUIRED: The Minister for Children and Housing to confirm the revised policy with the Minister for Social Security, the Minister for Treasury and Resources and with social housing providers.

SIGNATURE:

 

 

 

POSITION:

 

Senator Sam Mézec

Minister for Children and Housing

DATE SIGNED:

EFFECTIVE DATE OF THE DECISION:

 

 

 

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