Public sector rents to rise by 2.1%

Public sector rents in the Isle of Man are set to rise by 2.1%, with effect from 1 April 2019.

The revised charges, which are below the rate of inflation calculated through the Consumer Price Index (CPI), have been announced by the Department of Infrastructure following consultation with the Island's 16 local housing authorities.
The rise equates to average weekly increases of between £1.22 and £2.06, depending upon the size of the property. Tenants who have their rental costs met by the Government as part of their income-assessed Social Security benefits will not be affected by the change.

The cost of providing public sector housing, including maintenance, refurbishment and new and replacement properties, continues to outstrip rental income. The Department of Infrastructure is required to fund the difference, which for next year is likely to be more than £6 million based on the figures provided by the housing authorities.

Infrastructure Minister Ray Harmer MHK said:

'The Department has considered very deeply the impact of the rental rise on some tenants, and hopes the less than inflationary increase strikes the correct balance as it reflects the view of most of the local authorities.'

The Department of Infrastructure is consulting with housing authorities over proposals to change the existing rental setting process, with the aim of eradicating significant shifts from one year to the next, and hopes to be in a position to bring this forward soon.

Public sector tenants are reminded that help is available should they find themselves struggling to meet their financial obligations. In the first instance, they should contact the Social Security Division within the Treasury, where staff can provide advice regarding any assistance for which they may be eligible.