Government facing fight over proposed rent jump

The government is facing a rebellion from councils and tenants over rent increases that are double the rate of inflation. Councils argue that the formula that they are expected to follow to set rents is based on last September’s inflation rate of 5 per cent – which would normally be passed on to tenants. However, councils have said that they are torn between protecting their tenants from inflation-busting increases in rent, and safeguarding their housing budgets, which could be reduced next year if the councils use their reserves to subsidise lower rents.