Local authorities split over 'discretionary' one percent social housing charge

Boards can choose to add this on top of inflationary rate of 2.9 percent

Local authorities in charge of social housing are split on whether to charge tenants an additional one percent charge. 

It's a new system being introduced by the Department of Infrastructure, starting on 1 April.

All public sector housing, including sheltered and DoI housing, will be increased using the September 2025 CPI (Consumer Price Index) which is 2.9 percent. 

However, it is up to local authorities to decide whether to charge an additional one percent which would provide them with funds to put towards housing projects.

Previously, authorities would have been asked for their view on rent charges with the DoI making a decision based on those responses.

Leader of Douglas Council Devon Watson says they've opted to use the charge to increase its maintenance budgets and allow for further investment in its housing. 

He adds that each area has ‘different needs’ depending on where they are and one of the council’s aims is to be less reliant on the housing deficiency fund:

Ramsey Commissioners have agreed not to use the charge saying it could create a 'postcode lottery' across the Island. 

Lead Member for Finance Juan McGuinness says an inflationary rise is 'sensible' and the commissioners didn't believe there was any need to add 'unnecessary' costs to residents:

Both Peel and Castletown Commissioners also opted not to use the charge.

Peel members said they had 'reviewed' the current levels of rent arrears as well as taking into account 'escalating' food prices and high energy costs when making the decision.

Whilst the Castletown board said it didn’t want to burden people with an extra charge.

However, Onchan Commissioners have opted for it, despite board members raising concerns about the possibility some tenants won't be assisted via the benefits system to 'reduce' the impact of a rent increase.

Local Democracy Reporter Emma Draper explains what the commissioners said about the decision:

Also in the east, Braddan Commissioners has chosen not to use the one percent charge.

But both Port Erin and Port St Mary Commissioners are adding it on - with Port Erin saying it had considered the ongoing general maintenance requirements for its public sector housing.

Garff Commissioners, which operates a sheltered housing complex, also opted to use the additional one percent charge to its tenants. 

The local authority confirmed the additional one percent would increase the accommodation's maintenance budget by roughly £500 and that the residents were expecting it to be increased by five percent.

When it announced the move in December 2025 the Department of Infrastructure said: "This process was not considered transparent enough, with no clear guidance about the rationale used for setting the rate.

"Furthermore, Government has been moving towards an annual uplift of fees and charges across all Government services, usually linked to the relevant index, in this case CPI.

"The change aims to modernise the rent-setting process by aligning annual increases with the Island’s economic conditions while improving financial predictability for both tenants and landlords."