Optional 1% public housing rise splits authorities

A discretionary 1% rent rise for public sector housing has been praised by one local authority as helping to "tackle the housing crisis," but criticised by another for creating a "postcode lottery".

From 1 April, all public sector housing will go up by an inflationary 2.9%.

However, the Department of Infrastructure (DoI) - which previously set blanket rent rises after taking representations from local authorities - has given them the option to add the additional 1% to provide funds to put towards housing projects.

However, Ramsey Commissioner Juan McGuinness said while an inflationary rise was sensible, there was no need to create an unnecessary rise for residents.

The northern authority has opted not to impose the additional 1%, and McGuinness said the new system risked creating a "postcode lottery".

"As the years go by, and you see rent disparities increase, you could see people seeking to transfer," he said, adding: "If certain local authorities prioritise keeping rents low, they might see large waiting lists."

When the DoI announced the change, it said it aimed to modernise the rent-setting process by "aligning annual increases with the island's economic conditions while improving financial predictability for both tenants and landlords".

Previously, authorities would have been asked for their views on rent charges with the department making a decision based on those responses.

Leader of Douglas City Council, Devon Watson, said the move would enable the local authority to invest in maintenance as well as constructing new properties.

He said it still allowed social housing to be "extremely affordable compared to the private market", but would over 10 to 20 years reduce a reliance on the taxpayer, and move towards social housing being "self-funding".

It would help the local authority "tackle the housing crisis", he added.

Along with Douglas, Onchan, Port Erin, Port St Mary and Garff Commissioners have also opted for the rise, stating the funds were needed for maintenance or future housing developments.

But - like Ramsey - Braddan, Peel and Castletown Commissioners have opted not to apply the additional 1%, arguing they did not want to burden people with the extra charge.

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