The Government will announce that 5 million housing association tenants will get their first ever rent reduction starting from next year.

The Housing Minister will announce the plan of rent reduction on housing associations of just under 1% due to the consequences of deflation starting from next April - which will affect about 5 million housing association tenants.

Rent reduction is often associated with positive comments from the tenants’ point of view; however, the National Housing Federation warned that the reduction would not only lead to an income loss for millions of individuals - it also threatens and decreases the services provided by the housing association.

The expected fall in rent and income loss can be made up through reducing community services; however, job training schemes, energy efficiency programmes and recycling projects could also all be hit as a result of the plan.

The possibility of threatening the community services decreases the likability of the rent reduction plan. Correspondingly, the survey conducted by the National Housing Federation showed that 70% of tenants preferred rent freeze to rent reduction - only 28% supported and backed the rent cut proposal. Other than that, 77% of the tenants responded that the community services are either very or fairly important to them.

Is the Government’s plan of rent reduction still going to be announced and implemented as expected? Do you think the plan is effective or reasonable? Leave your comments on this issue.

Discount Landlord Insurance provides the most comprehensive landlords insurance within the buy-to-let market. For more information on cheap landlord insurance and other property insurance, please visit our website or call 0800 294 4522.