Andium Homes tenants will have their rent frozen next year.
The government says the annual rent increase will be deferred to help families cope with the ongoing impact of coronavirus.
Normally, the rent goes up based on a set formula on the 1st of January every year, which this year for most would have been 2.5%.
However, that won't happen in 2021 as a one-off.
Housing Minister, Senator Sam Mézec, says he's extremely pleased with this as it's been something he's been championing since the summer.
He hopes it will discourage further inflation in the private sector and keep social housing rents at a more affordable level:
"I am extremely pleased to announce this rent freeze, which I have been championing since the summer. Islanders have been through a very difficult time because of Coronavirus and, unfortunately, we may have a difficult winter ahead of us.
"Many people on low incomes will continue to be experiencing financial hardship because of the pandemic and I hope that, as a minimum, this rent freeze will discourage further inflation in the private rental sector and keep social housing rents at a level tenants can more easily afford.
"I will continue to work on a final settlement for social housing rent reform and introducing rent stabilisation."
Extremely pleased to announce I'll be signing a Ministerial Order to authorise a rent freeze for Andium tenants next year. It was a lot harder to get to this point than it should've been, but Andium officers have been so helpful and I am grateful to them.https://t.co/gfOWYyEKXi— Deputy Sam Mézec (@SamMezecJsy) October 26, 2020
Andium Finance Director, Lindsay Wood, says they worked closely with the government to find a solution that doesn't impact upon its development or maintenance programmes - or the £30 million return it makes to the government every year:
"We are happy to have been able to work with the government to defer the annual rent increase in 2021. Andium Homes relies on rental income to fund its operations and so we worked closely with Government to identify a solution that does not unduly impact on our development and maintenance programmes or on the £30m return that we make to Government each year."