17 November 2022
Summary:MTVH comments on confirmation over social security uprating and clarity on the social rent ceiling, allowing us to limit shared ownership rent increase to 7%
Following today’s Autumn Statement delivered by the Chancellor of the Exchequer, Jeremy Hunt, we wanted to share our response and comments on key areas, including the rents residents pay.
The ongoing cost of living pressures continue to make a significant impact on the people we provide homes to. The Chancellor confirmed that social rents in the UK will be capped at a 7% ceiling. He also confirmed that social security will be uprated in line with the rate of inflation, a measure that we have consistently campaigned for.
Geeta Nanda OBE, Chief Executive of MTVH, said:
“We welcome the government’s confirmation that social security and the benefit cap will be uprated with inflation. 7 in 10 of the residents we provide affordable rented homes to rely on this support, and we have called for this measure to be confirmed for many months.
“Setting rent levels for next year means looking carefully at both the challenges people are facing, and the pressing need to continue investing in existing homes and building much needed new affordable homes. With inflation driving up costs facing not-for-profit housing associations, getting this right has been one of the biggest challenges I have seen in more than 30 years of working in housing.
“Confirmation from the government of the 7% ceiling on social rent levels for next year will allow organisations to carefully consider rent setting decisions in the coming months.”
Furthermore, the clarity provided by the government’s decision over a social rent ceiling has allowed us to commit to limiting shared ownership rent increases next year to 7%.
Geeta Nanda OBE, Chief Executive of MTVH, said:
“We are deeply concerned by the impact cost of living pressures are having on the people we provide homes to, including shared owners. We also recognise the impact of high inflation on the formula for setting the rental element of shared ownership, and that residents will want to know what their bills will look like for the next financial year, from April 2023.
“We have long said that, if possible, we did not want to apply the maximum increases on rents for shared owners. Now that the government has confirmed its decision on social rent ceilings, we will apply the same ceiling to shared ownership rents.”
We will write to all residents confirming rent statements in the New year.
MTVH will continue to support residents facing financial challenges.
Last year, we helped residents to secure £1.94m in financial gains and budget boosting measures. MTVH has also increased the Tenant Welfare Fund by 50% to £608,000 in 2022/23, which is available to residents with additional needs for emergency support and assistance. We have also reconfirmed our commitment to the National Housing Federation’s pledge that residents will not be evicted as a result of financial hardship, so long as they engage with their landlord.
If you are in financial difficulty or wish to speak to us about any problems you are facing, our Empowering Futures team is available to give confidential advice on issues including benefits and how to maximise your income. Find out more about Empowering Futures here. You can contact the team via our Customer Hub on 0203 535 3535