ARCH, together with the National Federation of ALMOs and
Councils with ALMOs Group, has written to DLUHC to express concern
about the impact of the sharp increase in the cost of living on
tenants' budgets and the dilemma facing councils in deciding on
2023 rent increases. With the Consumer Price Index expected to show
inflation over 10 per cent by October, councils would, in theory,
be expected to raise rents by more than 11 per cent next
April.
This would impose an impossible burden on many tenants, yet
failure to increase rents by this amount may leave councils unable
to meet the full cost of essential works to ensure the safety and
decency of tenants' homes and continue to improve their energy
efficiency to help reduce fuel bills and reduce carbon emissions.
The letter asks for an urgent discussion on the
problem and potential responses.
ARCH has also commissioned a major research project to assess
the scale of the expenditure required on local authority housing
over the next ten years and the income likely to be available to
finance it from council rents and other sources. The research has
been jointly commissioned with the LGA and the National Federation
of ALMOs and is due for publication early in the
Autumn.