The policy meant that this year rents would have risen by as much as 5.25% following an unexpectedly high percentage rise in the overall cost of living on the island, had social housing providers not decided to postpone this increase to limit the impact on renters.
But now Senator Sam Mézec, Minister for Housing and Children, has ordered that the maximum increase per year be restricted to 4% (RPI at 3.25% plus 0.75%) – no matter the level of RPI.
Pictured: Housing Minister Senator Sam Mézec.
The minimum increase per year under the new system would be 2.5% (RPI at 1.75%).
Following this decision, the Senator has also moved to change the date of rent price adjustments to fit with the new year. Increases were previously applied on 1 October, but will now take effect from 1 January.
Senator Mézec commented that he was “pleased” about the change.
“It was clear that, with inflation at a higher rate than was expected this year, that the old system would not be fair for tenants who would have seen a 5.25% rise in rents. In line with the government’s strategic priorities, work will continue next year with a new Housing Policy Development Board to examine further work we can undertake to review our rent policies,” he said.