The DoI has unveiled fundamental change to how public sector housing rents are set across the island.
It will affect over 6,200 properties managed by the DoI Housing Agency and local authorities.
From April 2026, annual rent adjustments will be directly linked to the previous September’s Consumer Price Index. Housing organisations may add a discretionary 1% on top of the CPI figure.
The DoI stated the previous process, based on representations from Local Authorities, “was not considered transparent enough, with no clear guidance about the rationale used for setting the rate”.
This shift aims to modernise the system, aligning increases with economic conditions and improving financial predictability.
A departmental analysis of the last 14 years concluded the new mechanism would have produced largely unchanged average annual increases.
A safeguard clause allows the DoI to intervene and set a lower rate if high inflation made proposed increases untenable.
The DoI said aligning with September CPI, which is used for many Social Security benefits, will “ensure that the increases are affordable for tenants on minimum or living wages”.
All tenants will be formally notified of their new rents ahead of the 2026 implementation.