What is the impact of that 1% reduction in rent ?
In July 2015, as part of the Government’s austerity measures, a 1% per year reduction in
social housing rent for each of the next four years was announced, to start from April 2016.
This has a direct impact on our income as rent income into the HRA will decrease year on
year and consequently the Management fee and other Managed funds will need to be
reduced to take account of this reduced income.
Following discussions with NBC, agreement has been reached with the Council’s Cabinet on a revised five year financial plan, which reflects cumulative reductions in income to NPH of £20m over 4 years.