Further Regulations about Rent Reduction!


The Social Housing Rents (Exceptions & Miscellaneous Provisions) (Amendment) Regulations 2017 come into force between 1 March and 6 April 2017.

They are mainly of interest to registered providers running domestic violence refuges or almshouses; Community Land Trusts (CLTs); and to Cooperative and fully mutual housing associations. There are also some changes extending the definition of intermediate rent (IMR).

The changes cover the following:

  • Confirmation that accommodation provided by almshouses, Cooperative and fully mutual housing associations, and by CLTs will continue to be exempt from rent reduction for the remaining 3 years but limiting annual increases to CPI + 1% (although permitting use of the 5% flexibility on formula rent on re-lets);
  • Adding domestic violence refuge accommodation (‘DVRA’) to the list of exemptions from rent reduction but limiting increases to CPI + 1% (although permitting use of the 10% flexibility on formula rent which applies to all supported housing on re-lets);
  • Amending the definition of IMR accommodation (which is exempt from reduction) to include additional grant programmes not previously listed in the 2016 Regs viz: the Mortgage Rescue Scheme within the Affordable Homes Programme 2011-16; London Living Rent within the Homes for Londoners AHP 2016-21; the London Housing Zones programme;
  • Exemptions from rent reduction for accommodation where a housing administration order is in force or accommodation previously held by a housing administrator before being transferred to an RP (housing administration orders are orders made under the new special administration regime introduced by the Housing & Planning Act 2016 dealing with insolvency of RPs).

If you have any questions regarding these amendments, please contact our Head of Housing Management, Nick Billingham.


Share this post


Related categories

Article


JOIN OUR MAILING LIST

The latest news from Devonshires, sent to you direct.

Join our mailing list and find out what we’re up to and what we think about recent events and future possibilities.

SIGN UP
Join our Mailing List