The Department of Infrastructure have confirmed the increased will come into play by 7th April 2025.
Housing costs in the Isle of Man don’t seem to be catching a break anytime soon. The news comes following a 7.5% hike in 2024 suggesting housing cost, coupled with the current cost-of-living pressures, are already an issue for many.
As a result of the rent hike, which is estimated to affect around 6,200 public sector homes, the weekly cost for a one-bedroom flat will increase to £77.96, with a two-bedroom home going up by £5.47 to £114.87.
In addition, people who have three-bedroom houses are set to pay £131.60 a week – an increase of £6.26 and those in four bed home can expect to pay £162.05.
One of the main reasons the government have decided to increase rents is due to local councils facing the problem of needing to provide affordable new homes while still having to foot expensive services including capital maintenance.
Infrastructure minister Michelle Haywood said developing and maintaining housing stock while ‘balancing concerns around affordability’ was central to discussions, which included 15 local housing authorities.
The change in rent will inevitably see a hike in rental income that providers will be able to use on maintenance, which is increasing from 30% to 32.5% as well as administration from 6% to 7%.
However, those on a lower income that are struggling to meet their financial responsibilities have been encouraged to speak to their local housing provider who could offer a repayment plan.
In addition, the government have claimed it would automatically re-assess the benefits of people who have their rent met by social security before the rent hikes are enforced.
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