Public sector rents are set to rise by 2.6%, with effect from 01 April 2016. The increase is in line with the Isle of Man’s annual rate of inflation as measured by the Retail Prices Index (RPI). Announced by the Department of Infrastructure and endorsed by the Council of Ministers, the rise will result in average rent increases of between £1.39 a week for a one-bedroom flat and £2.94 a week for a four-bedroom house.

Tenants receiving housing-related benefits will not be affected and public sector rents will remain significantly lower than for equivalent housing in the private sector. The decision to introduce an RPI inflationary rise is aimed at supporting future investment in public sector housing while protecting those on fixed or lower incomes. The Department has also taken on board feedback during discussions with the Island’s local authority housing providers.

Infrastructure Minister Phil Gawne MHK said: ‘Government recognises the financial challenges being faced by some people in the Isle of Man, particularly those on fixed incomes with increasing household expenditure. Consequently a decision has been taken to cap the public sector rent increase at 2.6% in line with inflation. This rise will support the capital programme which has contributed so much to the comfort and standard of living of public sector tenants. He added: ‘Government is committed to providing and maintaining good quality public sector housing across the Isle of Man. However, we must also keep up with the growing cost of providing this service and that means meeting any inflationary rise.’

News release from Department of Infrastructure - 4th December 2015