G15 response to the future social housing rent policy consultation

The G15 represents London’s leading housing associations, collectively providing over 850,000 homes across the UK, including one in ten homes for Londoners. Our primary mission is to deliver high-quality, safe and affordable homes for those who need them most. Each year, we invest billions in maintaining and improving existing homes and building new affordable housing.

We welcome the opportunity to contribute to shaping future social housing rent policy. While we appreciate the government’s commitment to social housing, we believe more long-term measures are required to ensure affordability and sustainability for the sector.

In response to the rent settlement consultation, we offer the following recommendations:

1. A 10-year rent settlement for stability and growth

G15 members strongly urge the government to adopt a 10-year rent settlement (CPI+1%), providing the certainty required for strategic planning, financial confidence, and increased investment in new homes. Fixed guarantees are essential to re-building lender and investor confidence.

2. Reintroducing rent convergence

Rent disparities across identical homes persist due to historical policy inconsistencies. We therefore strongly urge the Government to reintroduce a fair rent convergence mechanism, which would correct these inequities and unlock an additional £3.5 billion for the sector over the next 10 years. Ultimately this comes down to a matter of fairness; we do not think it is right that neighbours living in identical homes should be paying different rents due to historic policy decisions.

3. Adopt holistic funding solutions for the sector

Housing associations are facing mounting financial pressures. We urge Government to take a holistic view of the sector’s financing and align rent policy with other key areas such as investment and grants. Rent alone cannot sufficiently fund the essential investment required for existing homes, the building safety programme, net zero by 2050 and the delivery of new supply. As such, this rent settlement must be paired with additional government funding.

We acknowledge that any rises in rent may place extra pressure on residents at a time of particular financial strain, however, we believe it is a necessary step in restoring our finances and enabling us to continue providing safe and affordable homes. A fair convergence mechanism would slowly raise rents to the income-linked formula level, which is well established as the most affordable rental level.

Residents are our top priority. We actively offer support to those who face financial hardship in a variety of ways:

• Hardship funds
• Money advice and guidance services
• Support for local foodbanks, community pantries and social supermarkets
• Community grants and capacity building initiatives
• Advocacy for affordable rents that align with take-home incomes.

We will continue to offer this support to residents who need it. However, without adequate rental income, we are unlikely to sustain these services.

The sector’s financial capacity has significantly declined due to escalating costs from repairs, safety requirements, and decarbonisation efforts. Without swift and decisive action, the ability to develop affordable homes and maintain existing ones will be severely compromised. Addressing these challenges is critical to ensuring a sustainable future for social housing.