Homes

Accessibility

Affordable Rents

Social landlords that have been successful in receiving Affordable Homes Programme money are able to introduce flexibility into the way they set rents and the length of the tenancies they offer.

Here we explain what these changes mean for new tenants and for people moving to a new home.

Affordable Rents - your questions answered

1. What is meant by ‘Affordable Rent’?

Social landlords are able to charge up to 80% of market rent for new homes built under the Affordable Homes Programme and for those that become available for reletting when people move out. All Affordable Rents will include any service charges.

2. Which homes will Affordable Rents apply to, and will existing tenants be affected?

Any new home built under the Affordable Homes Programme will have rents set at 80% of market rent.

A proportion of existing homes that become vacant each year will also be let in this way. It is important to know that the changes to rent levels and tenancy lengths apply only to new tenants. However existing tenants may be affected if they choose to transfer or mutually exchange into an Affordable Rent property. Where this happens, existing tenants would have to pay the rent level applicable to their new home.

3. Why are we bringing in these changes?

The new Affordable Rents are part of the Affordable Homes Programme. Without this £10m investment from the Affordable Homes Programme, we would struggle to
build the new, affordable homes that are badly needed in the area. With reduced funding from the Government, the
Affordable Rent enables social landlords to bridge this gap and continue to build new homes. Offering some shorter-term tenancies will help us to make better use of our housing stock, for example freeing up much-needed larger properties for families when people are ready to downsize.

4. How will Affordable Rents be calculated?

Like most social landlords, Somer will be using standard methods of calculation (approved by RICS, the Royal Institute of Chartered Surveyors) to set the initial rents
of properties eligible for Affordable Rents. Rents will be set at 80% of market rent for an equivalent property in the same location. Rents will be capped at the Local Housing
Allowance limit. That means anyone claiming Housing Benefit will still be eligible.

For each new tenancy we will check the rent for the property against the local market to ensure the rent remains no more than 80% of the market rent.

5. Will Affordable Rents affect the type and length of tenancy?

With some exceptions, all Affordable Rent tenancies will be Assured Shorthold fixed term tenancies. The term of the tenancy will be for six years, including a 12-month
Starter Tenancy period. Exceptions include sheltered housing tenants who will be given a lifetime assured periodic tenancy. We will always inform people bidding for a property what length of tenancy they will be given.

6. What happens at the end of the tenancy term?

Somer is committed to renewing fixed-term tenancies wherever possible. Sometimes there may be specific circumstances which would require us to end the tenancy. We will give at least six months’ notice where it
is our intention not to renew the fixed term tenancy.

We will provide advice and support to any resident whose tenancy is not being renewed. This support will help tenants to consider their housing options and to find
suitable alternative accommodation. Any tenant whose tenancy is not being renewed is able to appeal against the decision.

7. Will Affordable Rent properties be the only choice from 2012?

No, only a proportion of existing homes each year will be re-let as Affordable Rent homes. We will also still continue to build some new properties as ‘Social Rent’ properties. These are not subject to the rules set through the Affordable Homes Programme and will continue to be charged Social Rents and offered under lifetime tenancies.

We will continue to advertise all of our properties through the existing Choice-Based Letting registers, and will clearly mark Affordable Rent properties when advertising them.

8. When will the changes come into effect?

We are introducing our Affordable Rent policy from April 2012.

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Updated: 1/18/2012, page editor: Jason Humphries
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