Local authorities set and collect rents on their dwellings in accordance with section 58 of the Housing Act 1966. The making or amending of such rent schemes is generally a matter for local authorities within broad principles set out by my Department, including that rent levels should be based on income and reflect tenants’ ability to pay.
Local discretion and flexibility are inherent in the devolved administration of rent schemes and different approaches are taken to rent setting across local authorities. Accordingly, decisions regarding the sources of income included and disregarded for rent assessment purposes, including Disability Allowance, and the carrying out of rent reviews are matters for individual local authorities.
Housing for All commits to developing proposals to review the existing differential rent system and to provide for a standardised, national local authority social housing rent model. The objective is to develop and implement a model that provides the best blend between fairness, progressivity and sustainability.
My Department has completed an initial scoping exercise to determine the focus of the review. Further work is required to consider the practical application of such a scheme in the context of other reform package measures, as well as the broader circumstances of social housing funding programmes and the cost of living issues at this time.
Proposals will be submitted for my consideration in due course and any decision to implement a standardised national rents scheme will be considered thereafter, as appropriate.
