We are working on a range of financial and HRA business planning projects to develop new homes for Council’s with colleague Glenn Smith at Housing Finance Associates Ltd and more widely with HA clients and we thought this quick note might be useful to readers to advise that the Office for National Statistics published the inflation rates for September this morning, and the House Prices Index for August have also been issued by HM Land Registry.
The headlines are:
- The 12 month CPI rate is 0.5%.
- This means that
a) The maximum annual increase in social rents and affordable rents applied from 1 April 2021 for a sitting tenant is 1.5%
b) The annual increase applied to formula rent from 1 April is also 1.5%
- The 12 month CPIH rate (the Government’s preferred measure of inflation) is 0.7%, or 0.2% above CPI. This may apply to some budget lines, but not to social rents.
- The 12 month RPI rate is 1.1% (0.6% above CPI). This isn’t an official National Statistic, but may apply to some contractual uplifts (though, again, not social rents).
- The UK-wide 12 month HPI rate for August 2020 is 2.5%, and varies by region. This information may be relevant for any forecasts that rely on property values, such as depreciation charges and RTB receipts.
- The average UK property price was £239,196 – obviously hiding a mass of property type and location variables
- The annual price change for property over 12 months was 2.5% – In line with the reports in our Market Synopsis
If this information is helpful, we would be pleased to discuss the ways in which ARK can support your work in HRA business planning and new homes development and regeneration. To find out more please contact Ian Winslet email@example.com call 0777 0384141