Housing 2022 explainer: how is the cost of living crisis hitting tenants?
The cost of living crisis is a key theme at the Housing 2022 conference and exhibition in Manchester. It is also high up on the agendas of most social landlords. So what are they doing to prepare for it? Jack Simpson reports
What is the cost of living crisis?
The cost of living crisis is the perfect storm of rising costs that is set to fall on the population in the coming months.
Driven by high inflation and rising interest rates – as well as the war in Ukraine – the price of energy, food and fuel are all hitting record levels. Those living in social housing will be disproportionately impacted by these rising prices.
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Are landlords scared about the impact it could have on tenants?
The cost of living crisis is no doubt a major topic of conversation in the panel sessions at Housing 2022 and across the delegate floor.
It will be a major priority for landlords across the next 18 months.
And this will clearly be one of the key focuses of the discussion between former government health minister Edwina Currie and former England football star John Barnes, when they discuss ‘Social equality and true levelling up’ in the Exchange Auditorium at 9.30am on Thursday.
Can landlords help?
It is clear that the cost of living crisis will have the biggest impact on the most vulnerable in society and many will be housed by social landlords.
Not only will it be a question of supporting tenants financially, with the costs inevitably leading to more cases of arrears, but landlords will also have to be there to support tenants through the emotional issues that come from a cost of living crisis.
This will be looked into during a breakfast briefing session on the Connected Futures Stage on Thursday at 8.15am, which will discuss how local authorities and partners can tackle the problem.
How will rent be impacted?
Rising interest rates could potentially have their biggest impact on rents.
In 2019, the government confirmed that social housing rents will rise by the Consumer Price Index (CPI) plus 1% for the five years from 2020. Last year, this was based on the September 2021 CPI figure, with social landlords able to raise rents by 4.1%, with nearly every English housing association raising theirs by the maximum amount.
But the current CPI rate is 7.9% and it is likely to grow even more by next April. Landlords will have to make some tough decisions about how much they increase their rents.
Key questions to ask in the Housing 2022 sessions
- Do you expect the majority of housing associations to increase rent by the full CPI plus 1% level next spring?
- Will the cost of living crisis upend the government’s targets around homelessness?
- What can landlords do to help tenants facing the biggest cost of living impacts?
