THE decision by government to increase public sector housing rents by 10% will almost certainly lead to a similar increase across the board in the private sector.
That was the suggestion made in Tynwald this morning during an exchange of comments and questions following the controversial decision earlier this month to impose rental increases.
Eddie Lowey MLC claimed that the private rental sector was looking closely at the government decision and predicted that rents for all accommodation in the Isle of Man would rise by “at least 10%, possibly more.”
He added, “This sends out the wrong message.”
Social Care Minister Chris Robertshaw said the increases were necessary to maintain standards but he accepted a comment from Juan Turner MLC who suggested that means testing of public sector housing tenants was overdue.
Mr Robertshaw said that latest statistics showed that 5% of public sector tenants are in the top 25% of earners in the Isle of Man and added, “One must ask whether this is equitable or fair? This will lead to a really important debate to be had in the new year in the interests of fairness and equity.”
He also admitted that there were many examples of “inequities and imbalances” in the private rental sector which were resulting in circumstances of anxiety and stress amongst families.