Setting social housing rent for 2022-23

Amid rising costs on a number of goods and utilities across the country, national reports also show that social housing rent increases are likely to affect five million social housing tenants across the UK as well this year.

In Newark and Sherwood, an annual rent increase of 4.1% is being recommended to committee members of Homes and Communities and Policy and Finance next week. This would equate to, on average, a rent increase of £3.18 per week but Newark and Sherwood District Council is pledging to work with tenants to explain these changes and support those who are concerned about their finances.

Councillor David Lloyd, Leader of Newark and Sherwood District Council, said: “Right now, so many of us are struggling with rising prices and managing our finances, both at home and at work. It is this time of year when every UK Council has to look ahead and find a way to ensure it has the money it needs to deliver important housing services at the same time as recognising the pressures on local people. 

“In an ideal world, every Council in the country would want to freeze the rent that it charges to its tenants.  Unfortunately that is just not possible if we want to firstly, maintain the standard and quality of the homes that people live in; secondly, meet new long-term government guidance, for example to ensure homes achieve new energy efficiencies and move away from using fossil fuels, and finally to meet future social housing needs. The country is experiencing huge building supply problems on a wide range of products in the building and maintenance trades which is resulting in rising costs to maintain and build our new social homes.”

Social housing is still a very affordable option for those who need it in the district. For 2020/21 the average weekly cost of a privately rented three bed house was in the region of £144.23, while the cost of a social housing rented three bed house was £82.83. The current average weekly cost of the same house is £84.08.  A rental increase of 4.1% for these people would see rent rise to £87.53 per week for 2022/23.

Councillor Lloyd continued: “We recognise that any increase will be a concern for our tenants but we are confident that for the majority of those in receipt of financial support towards paying their rent, whether that be through Universal Credit or Housing Benefit, an increase in these benefits will offset their rent increase.“

“However, if anyone is concerned or wants to discuss how this proposal could affect them, please get in touch with us.  We have advisors who can talk through your own personal circumstances and we work with a number of partner agencies who can offer more specialist support as well.  So please do get in touch.”

The proposed rental increase will mean that in total the District Council will have an estimated additional £900,000 of income which will be reinvested into current homes and to build new homes to meet the increasing demand. 

In 2015, the government introduced a four year rent reduction policy, reducing rent by 1% each year until 2019/20. During 2020/21, when the government guidance changed, rent was increased by 2.7% and during 2021/22 by 1.5%.  The two rent increases over the last two years were not enough alone to offset the income loss from the four year policy decrease which resulted in a cumulative loss in rental income to the District Council of more than £11 million.

To discuss how the proposed rent change may affect you, please call 01636 650 000 or email housing@newark-sherwooddc.gov.uk

Table 1: A comparison between average private rent and social housing rent for 2020/21.  All amounts are average amounts per week.  2020 / 21 figures are used as these are the latest full financial year figures available.

Size of accommodation	Private rented cost in Newark and Sherwood*	Private rented cost in England*	Social housing rent for general needs tenants in Newark and Sherwood stock
Studio	£72.23	£132.69	£57.75
1 bedroom	£98.08	£150	£64.75
2 bedroom	£126.92	£161.54	£72.15
3 bedroom	£144.23	£184.62	£82.83
4+ bedrooms	£252.69	£311.54	£89.62

*Data taken from Office of National Statistics in November 2021.

Table 2: An outline of how the proposals would look based on your current rent cost with the proposed 4.1% increase added

Indicative current weekly rent level (2021 / 2022)	Weekly increase (assuming a 4.1% increase)	Monthly increase (assuming a 4.1% increase)	Annual increase (assuming a 4.1% increase)
£60	£2.46	£   10.66	£ 127.92
£70	£2.87	£   12.44	£ 149.24
£80	£3.28	£   14.21	£ 170.56
£90	£3.69	£   15.99	£ 191.88
£100	£4.10	£   17.77	£ 213.20
£110	£4.51	£   19.54	£ 234.52
£120	£4.92	£   21.32	£ 255.84