As you will be aware, RPs are currently in the middle of a four-year regime of annual rent decreases through the Welfare Reform and Work Act 2016 (the “2016 Act”). Until the recent announcement, the position post-2020 was not clear.

The Government has now confirmed that for five years from April 2020, the annual limit on rent reviews will be the annual change in Consumer Price Index (CPI) plus 1%. This reverts to the position before the 2016 Act and gives welcome certainty to associations regarding business planning.

As rent review time approaches over the next few months, do bear in mind our rent-review letter-checking service. For a fixed fee we will review your organisation’s standard rent (and service charge) review letters and enclosures to ensure they are compliant with the legislation, provisions of the relevant tenancy agreements, and regulatory guidance.

For more information

For more information generally about rents or our rent-review service, please contact Jonathan Cox.