Changes to social housing rent will help get Britain building says Government

For tenants the proposals include linking rent increases to the Consumer Price Index rather than the Retail Price Index. The changes will also allow landlords to charge rents closer to the market rate where the tenant is on a higher income so that limits on rent levels will be lifted where the tenant earns at least £60,000. Allowing landlords to charge higher rents in these circumstances would give landlords additional income to invest in affordable housing according to the Government.

In terms of calculating household income the Government is proposing to define "household" so that it covers both the persons named on the tenancy agreement and also the tenants' spouses, civil partner or partner's income where they are residing in the rental accommodation.

The Government has stated that in its consultation document that it would generally expect providers to use additional income to help fund new affordable housing, to meet housing need.

"[The proposed changes] offer the certainty and stability councils and housing associations need too, to plan ahead and invest their revenues to build more affordable homes in their area" said housing minister Kris Hopkins. "This and the £23 billion of public and private investment planned in the 3 years after 2015, means we’re on track to deliver the fastest rate of affordable housebuilding for 2 decades" he said.

The Government intends the changes to take effect from April 2015.