What Increase did Your Authority Ask For?

With local authority rents going up by 7.5% from April 1, our FoI has revealed only one local authority asked for such an increase.

The DoI announced the increases following ‘consultation’ with all 15 local housing authorities, adding £900,000 to the social security bill.

In repsonse to Gef’s FoI request, the DoI revealed that one authority, Onchan, recommended no increase, with the majority seeking a 5% increase.

Across the board, Cooil Roi (Garff sheltered accommodation) asked for 1.5% to 2%, Ramsey, Peel and Ramsey and Northern housing authority asked for 2%.

Braddan was joined by Southern Shelrted, Port St Mary, Peel and Western, Castletown and Port Erin in asking for 5%.

The only authority to ask for more than 5% was Douglas which asked for CPI plus 2%.

A gov spokesperson said: ‘The 7.5%  increase was arrived at after considering a number of affordability measures as well as the current gap between public housing rental income, and housing maintenance and management costs. This shortfall is met by the government in the form of housing subsidy. A rise in income reduces the need for the subsidy.’

They added that a number of factors were considered, including: impact of increases on average public sector rents; comparison of public and private sector rents; impact of options on people on minimum and living wage; expected increase to benefits in next financial year; DoI income and expenditure and subsidy required from central gov.

‘A balanced and informed approach was taken to the decision-making, which was particularly challenging this year because of rising costs,’ the spokesperson said.

The Cost of Rent Increases

Public Housing Rents Jump 7.5%