Public sector rent increases to be tied to inflation

The Manx government has announced that rent for public sector housing will now be tied directly to inflation, aiming to make annual adjustments more straightforward and transparent for tenants.

The Department of Infrastructure (DoI) explained that starting next April, rents for over 6,200 public housing units will rise in accordance with the Consumer Price Index (CPI) for September. Housing authorities will also have the option to add an additional 1% increase if deemed necessary.

This approach replaces the current system, where the DoI set rent rises after consulting the island's 15 local authority housing boards. The previous rent calculation method was criticized for lacking transparency.

The policy will apply to both DoI-managed properties and homes under local authorities. Officials noted that it is unlikely all landlords would use the extra 1% option every year.

First proposed in 2022, the new rent-setting method is designed to modernize the process by linking annual increases to the island's economic conditions. It also aims to provide tenants and landlords with more predictable housing costs, particularly benefiting those on minimum or living wages.

A new safeguard allows the DoI to lower rent increases if inflation spikes make standard hikes unaffordable. Housing authorities must inform both the DoI and tenants before implementing any discretionary rises.

Tenants will receive formal notice of their updated rent levels in advance of the 2026 financial year.

Author: Benjamin Carter