Ministers are considering increasing subsidised rents in social housing by more than inflation for each of the next ten years as part of plans to boost the building of affordable homes.
Council tenants could be hit with inflation-busting rent rises for a decade to pay for new housing - prompting fears it will only push up the benefits bill.
Chancellor Rachel Reeves is looking at introducing a new formula at the Budget that would put up rents in England by the CPI measure of inflation Sir Simon Clarke, who served as a Conservative minister in the Treasury and housing departments, told the Mail: 'The fundamental issue we face in our housing market is lack of supply, which is distorting house prices and rents in the private and social housing sectors alike.'Raising rent levels can only address the symptoms rather than the root causes of this problem.
But the proposal to hike rents was welcomed by the National Housing Federation, which represents housing associations.
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