The
annual review of rents for public sector housing has concluded following consultation
with the Island’s 18 housing authorities.
An increase of 5% has been agreed by the Council of Ministers and will
come into effect from 6 April 2015.
5%
represents an overall average increase of less than £4 a week. Tenants on housing related income benefits
will not be affected. Despite the
increase, public sector rents remain significantly lower than the cost of the
equivalent private sector housing on the Island.
Minister
for Health and Social Care, Howard Quayle MHK, said: “Government is committed
to continuing to assist in the provision of public sector housing across the
Island, to ensure this vital resource is available to those who need it most. Significant investment, either through
refurbishment or rebuild, has been made over recent years to a significant
proportion of existing stock in order to meet modern standards.
“This
year’s increase has been developed to strike a balance between the need for
more significant rent increases to address growing costs while recognising the
difficult financial times faced by many on fixed incomes with growing household
expenditure.”
The
cost of providing public sector housing – which includes maintenance,
refurbishment and replacement – outstrips the income received through
rents. The Department of Health and
Social Care is required to fund the difference, placing pressure on the
Department’s finances.
The
Minister continued: “Our approach to social housing must be equitable and
rooted in meeting the needs of the most vulnerable in our community. Those most in need are already shielded from
the effects of rent increases through social security income related benefits.
“I
am firmly of the view that public sector rents should be set at a more
realistic, sustainable level that more closely reflect the true cost of
providing housing as well as the continued investment in new and existing
stock.
“I
believe that we need to establish a link between a tenant’s income and their
level of rent if Government is to carry on providing good quality accommodation
for those in need. However we have to
get this right, making sure we avoid unnecessary bureaucracy or hardship. The Department is working closely with
Treasury to develop a robust and transparent mechanism that can achieve this.”
Average
rent increase shown below:
Property Type
|
Average Weekly Public Sector Rent 2015/16
|
Weekly Increase
(from 2014/15)
|
1 Bed Flat
|
£52.84
|
£2.51
|
2 Bed Flat
|
£72.33
|
£3.44
|
2 Bed House
|
£76.57
|
£3.64
|
3 Bed House
|
£90.32
|
£4.30
|
4 Bed House
|
£112.34
|
£5.35
|
|