Commissioner Juan McGuinness says new system could create 'postcode lottery'
Ramsey Commissioners will not be adding an 'optional' one percent increase to its social housing rent for the next financial year.
Under new rules introduced by the Department of Infrastructure, rents are going to be set using the Consumer Price Index (CPI) from September this year - with a 'discretionary' increase for housing authorities.
The department's new method will apply to its own properties as well as those owned by local authorities.
However, Lead Member for Finance Juan McGuinness has concerns that the new system will create a 'postcode lottery' for tenants and may put strain on authorities with newer stock.
Currently, all authorities which own social housing (including sheltered accommodation) are asked for their view on the rent increase and the DoI then makes a decision based on these responses.
Mr McGuinness says the inflationary rise is 'sensible' and the commissioners didn't believe there was any need to add 'unnecessary' costs to residents.
Local Democracy Reporter Emma Draper has been speaking to him:
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