Private and social housing tenants urged to join rent strike

Campaigners are warning that unless the government imposes an across-the-board freeze on rents and service charges in England, then private and social housing tenants will be urged to join a rent strike.

The warning comes from Social Housing Action Campaign (SHAC) which, along with other campaign groups, has written to the housing secretary Simon Clarke over the rent cap for social housing consultation – which ends this week.

The group also says that private rental sector (PRS) tenants need to be protected from ‘profiteering landlords’ and that the PRS should also see a rent freeze and a ban on evictions being imposed.

Rent increase cap

The consultation by the Department for Levelling Up, Housing and Communities (DLUHC) is aimed at finding out whether there should be a rent increase cap of zero – or 3%, 5% or 7%.

The government says it wants to install a maximum cap of 5%.

But the 5% cap would see the income of social landlords being reduced by £1.3bn next year.

And the National Housing Federation (NHF) has warned that without extra government funding, social landlords will struggle to build new homes – and maintain the properties they do have.

They have also said that supported housing would become unviable.

SHAC wants the government to freeze social rents

However, SHAC wants the government to freeze social rents, service charges and shared ownership rents for 2023-24.

The group says that any rise will lead to homelessness and worsen poverty for tenants struggling with the cost-of-living crisis.

They also want the re-introduction of the evictions ban that was unveiled during the Covid-19 lockdown.

Social housing rent rises are capped by the government

Social housing rent rises are capped currently by the government, and they use the Consumer Price Index (CPI) of inflation plus 1% which is set every September.

In its letter to Mr Clarke, SHAC says: “Rents for council and housing association tenants were set to rise by 11% or more in April 2023.

“A 3-7% formula rent rise will still mean deeper poverty and the risk of homelessness for many, and a further burden for four million tenant households already facing massive bills for food, energy and other necessities.”

They say the government should:

• Freeze rents for all council and housing association tenants in 2023
• Extend the freeze to service charges
• Re-introduce the ban on eviction proceedings for rent arrears for council and housing association tenants where tenants are unable to pay
• Provide government funding to councils to ensure there is no effect on housing quality or services to tenants.
• Support to housing associations and registered providers should be provided on a means-tested basis.

The letter was also signed by Defend Council Housing (DCH), Homes 4 All, The New Economics Foundation, and Housing Action Southwark and Lambeth.

Private rental sector tenants are also being considered

However, it’s also worth noting that private rental sector tenants are also being considered and the letter points out:

“We recognise that these issues also affect private renters and leaseholders and are working with others of all tenures to win a rent freeze, stop evictions, protect tenants from profiteering private landlords and leaseholders from increasing service charges.

“We need Government investment in more and better homes with secure tenancies and social rents.”

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