Sharratts

Affordable Housing Law

Tel: 01959 568000

Rent Increases permitted under Spending Review

8th July 2013

In the spending review George Osborne announced that the Government will allow English Registerted Providers to increase rents by the Consumer Price Index measure of inflation plus 1% over 10 years from the year 2015/2016.   This will of course be a significant increase from the current limit of RPI plus 0.5% .

It is worth therefore bearing in mind when negotiating or considering the terms of Section 106 Agreements that Registered Providers are not caught out and separately tied in to the old rate of 0.5% and to ensure the terms of any such Agreements reflect the new Government proposals.