Anticipated increase in housing rents by 4.1% to 7.7% in the upcoming year

In a recent announcement, the government has revealed that tenants across the UK will face rent increases next year. The rates of these increases will vary depending on several factors, including the type of housing and the current rent levels.

The highest rent increases are expected in economically strong metropolitan regions and large cities, where demand continues to outstrip supply. These areas may see rent rises of up to 8 percent due to changes in regulation linking rent rises to the average inflation of the past three years.

For those living in social housing, rent increases will be based on the average inflation across the preceding three years. This means that social housing properties, which cost less than €900 in 2025, will see a maximum increase of 5 percent. For properties costing more than €900, the maximum increase is 5 percent for rooms in shared properties, and 4.1 percent for standalone properties.

Tenants living in affordable housing, with current rents between €900 and €1184, will experience a 7.7 percent increase in rent next year.

In the rent-controlled housing sector outside the social housing sector, rent increases will align with average salaries, which currently stand at 6.7 percent. However, landlords are allowed to add an additional 1 percent to the rent increase, resulting in a maximum increase of 7.7 percent.

Non-rent-controlled properties will increase in price by the lower of wages or inflation, plus 1 percent, in 2022. This means that the maximum increase for these properties is 4.1 percent, with an average inflation rate of 3.1 percent.

It's important to note that these figures were decided at last week's housing summit. The changes are aimed at addressing the ongoing housing issues in the UK, while also ensuring that landlords are able to maintain their properties and cover their costs.

The government encourages tenants to budget accordingly and seek advice if they are struggling to afford their rent increases. They also remind landlords of their responsibilities to provide safe and suitable accommodation for their tenants.