Public sector rents to rise by 1.9%

Public sector rents in the Isle of Man are set to rise by 1.9%, with effect from 1 April 2020.

The revised charges have been announced by the Department of Infrastructure following consultation with the Island’s 15 local housing authorities.

The rise equates to average weekly increases of between £1.19 and £2.01, 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.

Significant investment is being made in public sector housing. The gap between the cost of funding public sector housing and the income from rents is likely to exceed £6 million a year. Despite this, the Department remains mindful that some public sector tenants will struggle to meet housing costs, and is setting an increase which is fair and reasonable for all parties.

Infrastructure Minister Ray Harmer MHK said:

‘Maintaining a balance between the cost of delivering the service against the cost to the tenant is a difficult one. The Department’s intention is to move to periodic rental setting over 4 to 5 years rather than setting the rental on an annual basis and it will work with local authorities to endeavour to achieve this.’

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.