The government has introduced a new tenancy scheme for social housing landlord, such as Housing Solutions. This new scheme is called Affordable Rents.
The Affordable Rent Scheme allows housing associations to;
- let properties at rents of up to 80 per cent of those charged in the private sector
- offer tenancies for a fixed term, instead of life
This new tenancy will be introduced in early 2012. This does not affect exisiting tenancies, but it does afect the new homes that we build and some of our homes that become empty.
We've put together a list of Frequently Asked Questions about the scheme and new tenancy.
What is the Affordable Rent Scheme?
It's a new tenancy introduced by the Government to allow housing associations to let properties at rents of up to 80 per cent of the rents charged in the private sector. Homes let under this new tenancy, will still be more affordable than renting privately, but will be more expensive than rents charged by housing associations for general needs tenancies.
What is different about this tenancy?
This tenancy will have a fixed term of five years and will not be a tenancy for life. The reason why this fixed term has been introduced is to give landlords the opportunity to review the tenancy and to see if the property still suits the needs of the resident. Other terms and conditions and the services we offer for these tenancies, will be very similar to those offered to our general needs tenants.
Does it affect all Housing Solutions homes?
No, this does not affect exisiting tenancies. However, from early 2012, the majority of our new homes will be let under the Affordable Rent Scheme as well as 25 per cent of homes that become available to let each year.
What happens at the end of the fixed term tenancy?
Many tenants will need to stay in affordable housing, either in their current home or another more suitable property if their needs have changed; others will be able to move on to shared ownership or private rented housing. We will discuss the various housing oprtions with residents well before the end of the fixed term, and offer support and advice with regard to re-housing, where this is appropriate.
What happens if I need to be re-housed?
We will give you:
- The reasons why the property is no longer suitable for you;
- Six months notice;
- Help to find another home
Will I be able to claim Housing Benefit under the new tenancy?
Yes, you will be able to claim Housing Benefit for this tenancy.
Why has the Government brought in this new tenancy?
The Homes and Communities Agency are no longer providing the level of funding they used to for housing associations to build new homes. This new tenancy has been introduced to provide higher rents so that housing associations can use the additional rent to continue to build much needed new homes.
The tenancy is also a move away from 'homes for life'. It offers landlords like us an opportunity to review whether the house is still suitable for the person living in it or if it provides a better home for someone else, i.e. a single person living in a large family home when there are families living in properties that are too small for their needs. There is a huge need for affordable housing and the Government and Housing Solutions are trying to ensure that best use is made of all the homes that are available.
How do you calculate the market rent?
The market rent for the property is calculated by an independent valuation and will be based on similar properties in the area.
Will my rent be increased each year?
Yes, rents will increase each year. Details of rent increases will be detailed in your tenancy agreement.
Will I have the right to transfer to another property?
You will be able to transfer to another property if your needs change but will remain on an Affordable Rent Scheme tenancy.
Can members of my family succeed to my tenancy?
Yes they can. The rights for succession will be contained in your tenancy agreement. Your Tenancy and Neighbourhood Officer will be able to offer advice on who would be eligible to succeed.
Will I pay higher rent than my neighbours?
It is possible that you could pay higher rent than your neighbours if they have a different tenancy.
How will properties covered by this new tenancy be allocated?
All properties will continue to be allocated through local authority General Needs Waiting lists.
To download information regarding the Affordable Rent Scheme, click here