How will rent cap increases affect the affordable housing sector?

Rents for the four million people currently in social housing were set to rise by a potential 11% in 2023 but in an attempt to limit this rise a government-led consultation was launched in August 2022.

In November Jeremy Hunt announced that following this consultation there would be a 7% cap on social rent increases for 2023/2024. This was welcomed by affordable housing providers and sector professionals as an important step in the right direction for providing security and stability. But what does this mean for tenants? And what are the implications for social housing providers? Let’s take a closer look at this new policy.

What does this mean for tenants?

The 7% social rent increase cap means that tenants who live in social housing will have more secure and predictable rents. Predictions had been made that rents could go up by as much as 11%, so this announcement is good news for tenants who will now only see a 7% rise in their rent over the next year. This also helps to ensure that people living in social housing can continue to do so without feeling overly burdened or stressed about their financial situation. With a strain on finances, 7% will still be felt but it’s a lot more positive than it could have been.

Implications For Social Housing Providers

Although this announcement is beneficial for tenants, it does present some challenges for those managing and running social housing projects. With a 7% cap on rent increases, there is less money available to invest back into the services offered. This means that resources are even more limited than before, and providers may struggle to keep up with demand for repairs or other essential services.  In addition, there may need to be extra funding from elsewhere in order to ensure that providers can meet their needs while still offering competitive rents to tenants.


While there are some challenges faced by those managing such projects due to limited resources, it is hoped that additional funding can be sourced. This would ensure that tenants have access to secure homes at reasonable prices, while also enabling providers to cover costs associated with running these properties without taking too much of a hit financially.

It is also noteworthy that this decision was made after extensive consultation with industry professionals who understand the needs and challenges of the sector. This demonstrates that the government is listening to experts in the field and taking their advice into consideration when making policy decisions. By consulting with those who are most familiar with housing issues, governments make informed decisions that reflect actual conditions on the ground rather than relying solely on computer models or projections which may not accurately reflect reality.

Overall, the introduction of a 7% cap on social rent increases has been widely praised as being beneficial both for tenants and those responsible for providing social housing services.

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