You can change your cookie settings at any time. In 2002 the Labour Government introduced a rent convergence policy under which, over a 10-year period, rents in social housing (local authority and housing association owned stock) were to be brought into alignment. Banking, Capital Markets & Property Charging, Your Quick Guide to the Rents for Social Housing from 2020-21 Consultation, Devonshires advise Riverside on £150m private bond issue with international investor, Devonshires awarded with Banking & Finance Law award at the Yorkshire Legal Awards, Devonshires advise Vale of Aylesbury Housing Trust on Group Refinancing, Devonshires act for Pobl Group Limited on their group reorganisation. The current formula is devised on the basis that social rents take account of: 1. the condition and location of a property 2. local earnings 3. number of bedrooms in a property. Published 23 May 2014. Fair rents If a tenancy started before 15 January 1989, the tenancy is likely to be a regulated tenancy. LAs can apply to exempt accommodation with the agreement of Government where application of the rent standard would be financially unviable (to be known as “relevant LA accommodation”). In summary, this guidance provides an intermediate housing approach that could: • Provide a sub-market housing solution for people on low to moderate incomes • Ease the demand and pressure on social … This guidance works in … Join our mailing list and find out what we’re up to and what we think about recent events and future possibilities. Keeping this cookie enabled helps us to improve our website. Clarification that HIST rents (rents for high income social tenants) are not mandatory for RPs, only voluntary. Exemption from compliance for local authorities is not in the ‘gift’ of the Regulator and is dealt with in the Rent Policy Statement (the Policy Statement on rents for social housing … IT’S THE LAW: Tenancy types and what they mean, Social Housing: 10 Challenges Facing Registered Providers, The Mortgagee Protection Clause Explained. Ref: ISBN 9781409842026 Draft Guidance. We are using cookies to give you the best experience on our website. Social rent levels are set by a reference to a formula.The aim of the formula-based approach is to ensure that similar rents are paid for similar properties. Identify platforms such as email, websites, hotlines, automated text messaging, newsletters, and flyers to help communicate information on: 1. This website uses Google Analytics to collect anonymous information such as the number of visitors to the site, and the most popular pages. The main changes included in the guidance … We’ll send you a link to a feedback form. Housing associations are under pressure to offer rent holidays after only one pledged not to evict any tenant in arrears due to self-isolating because of the coronavirus.. It will take only 2 minutes to fill in. You can find out more about which cookies we are using or switch them off in settings. At the same time, the Government published its policy on rents for local authority owned social housing from April 2015 onwards - Guidance on rents for social housing. This guidance sets out the government’s policy on rents for social housing from April 2015 onwards. To help us improve GOV.UK, we’d like to know more about your visit today. Back to top 4. This guidance sets out the government’s policy on rents for social housing from April 2015 onwards. PDF, 123KB, 20 pages. 2016/17 rent data was taken from the latest Homes and Communities Agency dataset of all private registered providers of social housing in England, released on 24 October 2017.The dataset has monthly rents for all property types from private registered providers of social housing … Starting point for rents is “2020 limit” = average weekly rent for a unit in final year of rent reduction plus (upto) CPI + 1%. In order to provide an excellent service we aim to recruit the best people; people who stand out from the crowd! In May 2014 the government responded to the consultation and provided its final guidance on rents for social housing. Reasonable rents are set by a reference to a formula.The aim of the formula-based approach is to ensure that similar rents are paid for similar prope… processfor planning the delivery of the majority of grant-funded homes through the Affordable Housing Supply Programme. Annual maximum increases of CPI + 1% restored for at least 5 years (review in 2023). Guidance on Tenant Rights for Page 2 of 2 December 2017 Supportive Housing Units with No Rent Subsidies • Utility allowance = $20 • Owner may charge the tenant $110 per month in rent because the current Supportive Housing … The direction requires the regulator of social housing to set a new rent standard for registered providers of social housing (including local authorities) with effect from 1 April 2020. The requirement to charge reasonable rents applies to most secure, flexible and introductory tenancies, exceptions are set out below. 3. social rent ’ (which constitute a majority of rented social housing properties) have been set based on a formula set by government. Guidance and forms to tell us about the properties you rent to help us work out rent valuations. Consultation ended on 24th December 2013. Schedule 2 to the 2016 Act introduces, for a period of 4 years, requirements about the maximum levels of rent for social … It supersedes HSIDGN 2016/02. Re-lets of affordable rent as before (80% of market). Relaxation of the rules governing use of affordable rent which widen the scope of the Government, Homes England and/or the GLA to agree the use of AR. Similar wording was previously used in the guidance on rents for social housing that was issued by the Department in 2014. Rachel Orgill-Harris, Solicitor in our Banking, Governance & Corporate team features in @HousingMagazine. This means that every time you visit this website you will need to enable or disable cookies again. Flexibilities should not be employed as a matter of course – to be used in a “balanced way”. We will see the continuation of formula rents for social rented units and affordable rents continue to be set as before at up to 80% of market rent. The Regulator of Social Housing is consulting on the new rent standard to apply from 2020 which is based on the direction from the Secretary of State for Housing, Communities and Local Government and to government's rent … Please enable Strictly Necessary Cookies first so that we can save your preferences! Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful. Guidance on rents for social housing. Can leaseholders claim compensation if the landlord delayed or failed to carry out repairs? All content is available under the Open Government Licence v3.0, except where otherwise stated, If you use assistive technology (such as a screen reader) and need a That limit is the Retail Price Index (RPI) + 0.5%. The guidance Added link to a new direction to the regulator of social housing published February 2019. 1.4 Since 2001, most rents for social housing (“social rents”) have been set based on a formula set by Government. In summary, this is what you need to know: If you need any more information on issues raised by the Consultation or on rent compliance generally, please contact Nick Billingham. If 2020 limit is above formula (plus flexibility) => increase capped at CPI. If you disable this cookie, we will not be able to save your preferences. Re-lets of social rent at formula rent plus flexibility. 10% tolerance for supported housing continues. And it outlines the proceduresto be followed by grant applicants and grant … A local authority must also take account of Government guidance and the Rent Standard as set by the regulator of social housingwhen setting rents. Calculation of formula rents unchanged; rent caps continue with CPI + 1.5% annual uplift. You’ve accepted all cookies. Guidance and directives from state and local officials and state and localexternal iconhealth departments. In October 2013 the government published a consultation paper on rents for social housing from 2015/16. https://bit.ly/37x6tMS. Re-lets of affordable rent … It is up to social landlords (and landlords in general) to determine the balance between rents and housing needs of the local communities, with the general idea that rents should remain affordable to low-income households without the only viable way to be through housing … Can rebase affordable rents on renewal of fixed term tenancy but capped at CPI + 1% on existing rent. Social housing allocations legal framework: statutory guidance for social landlords 13. It applies to stock-owing local authorities only. Setting rents for social housing 6 Future requirements 3.5 From 1 April 2020, a new Rent Standard will be in effect. In an England-based study, the Chartered Institute of Housing recommended the adoption of a common definition for social housing, the increase in the supply of affordable housing and to link … Don’t worry we won’t send you spam or share your email address with anyone. Into force from April 2020 unless RPs have not completed rent reduction by then. If 2020 limit is above formula (plus flexibility) => increase capped at CPI. The Rent Standard is one of three economic standards that the Regulator of Social Housing expects registered providers to comply with. A rent formula was established with actual rents moving towards a national formula rent which took account of values of properties and local earnings relative to national earnings. This guidance sets out the government’s policy on rents for social housing from April 2015 onwards. The proposals are not controversial. It sets the requirements around how registered … applies to local authority registered providers (as well as to private registered providers) The direction also sets out the basis on which social rents and affordable rents are set. One important departure is local authorities being made subject to the new Rent Standard. Rent Arrears or Other Outstanding Liabilities Related to a Tenancy Will apply to local authorities because the current Limit Rent for LAs is not compatible with Universal Credit. Exceptions: the same exceptions apply as under the old Rent Standard and under rent reduction (LCHO, IMR, temporary social housing, student, specialised supported, PFI, care homes etc). This website uses cookies so that we can provide you with the best user experience possible. Private registered providers of social housing (PRPSHs) must charge rents in accordance with the Rent Standard, as set by the regulator of social housing. Section 23 of the Welfare Reform and Work Act 2016 (“the 2016 Act”) introduces, for a period of 4 years, a 1% annual reduction to the rent payable by social tenants to registered providers of social housing in England. version of this document in a more accessible format, please email, Ministry of Housing, Communities & Local Government, Welfare Reform and Work Act 2016 - social rent reduction, Direction on the rent standard from 1 April 2020, Coronavirus (COVID-19): guidance and support, Transparency and freedom of information releases. We also have an office in Leeds and a satellite office in Colchester. on Rents for social housing from 2015 to 2016 consultation was published in October 2013 with a summary of responses published in May 2014. This file may not be suitable for users of assistive technology. We use cookies to collect information about how you use GOV.UK. The latest news from Devonshires, sent to you direct. The Guideline Limit for increases in rents is applicable to all low cost rental housing, including Social Rent and Affordable Rent. 2. How additional information will be shared, and where to direct questions. Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings. Our main base is in central London, near to Liverpool Street Station. Re-lets of social rent at formula rent plus flexibility. • Social Rented Housing – provided by local authorities and Registered Social Landlords where rent levels have regard to the WG’s guideline rents and benchmark rents; • Intermediate Housing – where prices or rents are above those of social rented housing but below market house prices and rents. In February 2019, the government published a new direction to the regulator of social housing to set a standard on rents for registered providers of social housing (including local authorities), to come into effect on 1 April 2020. We use this information to make the website work as well as possible and improve government services. Starting point for rents is “2020 limit” = average weekly rent for a unit in final year of rent reduction plus (upto) CPI + 1%. We group our work into Strengths – just click on a Strength to your right to find out more: Devonshires has a reputation for providing high quality legal services to a diverse range of client sectors. Don’t include personal or financial information like your National Insurance number or credit card details. This guidance note sets out the new RSL social rent benchmark assumptions which will be used for grant assessment purposes with immediate effect. Local authorities must charge reasonable rents for tenants in its own housing stock. 5% flexibility on formula rents restored (having been removed under rent reduction). How to stay healthy, including videos, fact sheets, and posters with information on COVID-19 symptoms and how to stop th… The dedicated and talented people that work for Devonshires are the platform for our success as a firm. There is an annual limit – a Guideline Limit - for rent increases in social housing (including Affordable Rent) for any single year. Small but welcome tweak to the exception for IMR extending it to keyworker IMR generally without any other conditions. How your facility is helping to prevent the spread of COVID-19. A ‘bedroom weighting’ factor was also applied to try and ensure the resulting rents better reflected the perceived val… What we ’ re up to and what we ’ re up to and what we about! Provide you with the best experience on our website most popular pages started before 15 January 1989, the is. At all times so that we can provide you with the best experience on our website not completed rent by... 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