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The Use of Rent Caps in the Rent Restructuring Regime, 2005/06 and 2002/03

This paper outlines the magnitude of the impact of rent caps on rent determination. It also examines where the rent caps have an effect and whether the impact is concentrated among a particular range of housing associations.

The paper estimates the number of dwelling units which are owned by housing associations (HAs) where their average net rents at the local authority (LA) level for the appropriate property size is at or above the relevant rent cap. The analysis is carried out for 2002/03, the time when the target rent/rent cap regime was implemented, and for 2005/06 – the later data available. In addition, it estimates the number of different size units where average rents by HA at the LA level were within £5 of the rent cap in the same years. The analysis can only be indicative because they are based not on individual rents but on average rents set by HAs by bedsize in each LA area.

Authors

Christine Whitehead

BingJiang Cao

Publication Date

1st October 2008