If you have been following the news, you will know that events in the global economy have created unprecedented instability. At home, we have seen national legislative changes that should be celebrated, particularly the Renters’ Rights Act (RRA). While we all feel the anxiety generated by this volatility, there is a little-known knock-on effect of these combined circumstances that is now walking through our front door.
Housing associations are meant to be a stable haven. Rent is affordable and any increase is capped and limited to once a year (thank you RRA). Longer-term tenancy agreements are designed to reduce the inherent anxiety of a short-term let.
However, every housing association property or leasehold block comes with a set of service charges. These cover communal maintenance, utilities, and safety. At this time, there is no cap on what any freeholder or association can charge.
Domestic utility bills are capped, protecting households from the rise in fuel prices caused by the wars in Iran and Ukraine. But for communal areas, the units are charged at an uncapped commercial rate. This leaves tenants subject to the whims of foreign nations and the shifting, isolationist policies of the US administration. Additionally, standing charges for commercial connections are set to rise by 94% this year to help fund the renewal of the UK’s energy infrastructure.
The safety standards put in place by the Building Safety Act 2022 (and as of 07/04/26 enforced by RICS) are essential to ensure landlords maintain safe buildings, yet there are significant associated costs. When you combine this with the huge uptick in the cost of basic building materials, you are left with a very large financial squeeze.
The question is: who should feel that squeeze?
A client came to one of our drop-in sessions this week holding his new service charge bill. The monthly figure is 1.5 times the cost of his rent. His housing association property is now mathematically unaffordable. We are now working again to find a solution for a man who had already “reached” the safety of social housing.
He is just one person, but we expect to see many more in the coming months. These individuals are threatened by circumstances far beyond their control. We will welcome them all and find a way to keep them housed, but it will not be easy.
