Open until July 30, the Regulator of Social Housing (RSH) consultation is as a result of the secretary of state for housing, communities and local government’s Direction to RSH, which was published in February 2019, following the government’s consultation in autumn 2018.

RSH is also required to have regard to the government’s Policy Statement on rents, which was published alongside the Direction.

Planned to come into effect from 1 April 2020, the key elements of the Direction are:

• For RSH to also regulate rents charged by social housing stock-owning local authorities (LA registered providers) – aligning the regulation of council rents with private registered providers
• To lock in the annual 1% reduction in social rents between 2016 and 2020, implemented through the Welfare Reform and Work Act 2016 – which aimed to help reduce costs for tenants paying all or part of their rent and put welfare spending on a more sustainable footing
• To restrict rent increases on social rent and affordable rent properties by up to CPI+1% annually from 2020 for a period of at least five years – striking a balance between the interests of landlords, tenants and taxpayers
• To reinstate the 5% flex for general needs stock and 10% for supported housing providers – allowing registered providers discretion over the rent set for individual properties, taking into account local circumstances and affordability in consultation with tenants.

Fiona MacGregor, chief executive of RSH, said: “This consultation focuses on whether we have appropriately reflected the government’s Direction to us. The Direction itself has previously been consulted on by government. Our aim is to ensure that the setting and management of rents is clear and easy to understand for all registered providers of social housing.

“The long-term rent settlement should help provide a stable financial environment for the social housing sector to make the best possible use of its resources in supporting the delivery of new homes and effectively managing and maintaining properties, while protecting the interests of social housing tenants.”

The consultation will remain open until 30 July 2019.