Social landlords including councils will be allowed to increase rents by inflation plus 1% for five years from 2020 onwards, the government has confirmed.
Plans for the rent increase, which will be based on the consumer price index measure of inflation, were consulted on last autumn.
In a statement this afternoon housing minister Kit Malthouse confirmed the government was pressing ahead with the plan.
He said: “The new rent deal will ensure that housing associations and councils have the certainty they need to manage, maintain and build more social housing – providing tenants with high-quality homes and helping to restore the dream of home ownership for a new generation.”
Since 2016 councils have been required to reduce rents by 1% a year, which has affected their ability to spend on maintenance and building new homes.