RSLs miss rent rise goal

The analysis of RSL rents carried out for the Housing Corporation by Cambridge University shows 97 out of the 392 associations surveyed recording increases above RPI plus one per cent.

The average rent increase was 3.2 per cent- well inside the 4.2 per cent limit. But 25 per cent of associations recording rent rises above the target, and 13 per ce nt had rent increases above RPI plus 2. The maximum increase was 16 per cent.

A special case is made for the recent large-scale voluntary transfers, but others will be investigated by the regulator.

Report author and director of Cambridge housing and planning research Christine Whitehead said: "A lot of the RSLs concerned are LSVTs but not by any means the majority. This is not a good explanation for all of them."

The figures show an improvement from last year, when a third of RSLs failed to meet last year’s rent target. But Whitehead said the numbers were still a cause for concern.

"There are still a significant proportion of RSLs whose rents are going up more than the target," she said, "They are going to find it much harder when rents increase at inflation only. Not only is it going to be RPI plus zero but we are talking about 1.1 per cent RPI next year and that will mean a massive reduction in increases."

The corporation presented a different view claiming the "vast majority" of RSLs would not be investigated further.

Tim Jackson, the corporation’s assistant director said: "We know who the ones are that have gone over RPI plus one and we will be looking at those. The vast majority will drop out."

National Housing Federation Jim Coulter said: "These figures do show an improvement on last year and reflect market forces and regulatory pressures. I would expect the trend to continue."

Commenting on how RSLs will cope when inflation only targets are set he said: "Present results show RSLs are responding. We have always expressed the view that the government should show extreme caution to ensure RSL leadership. RPI zero is not a sustainable as a permanent destination."

The third annual sector study figures are taken frorm Regulatory and statistical Returns from 31 March 2000.

LSVTs recorded and average increase of 4.4 per cent. Black and minority ethnic RSLs had much lower average rent increases at 2.1 per cent that with the 3.3 per cent average for mainstream RSLs.