Reply To: Profit Making RSL


I am just wondering if there had been further updates on how profit making RSL should be treated?

We had a handful of claims a few years back, that named Sage Housing Ltd as its LL. It was established they were a for profit making housing association. Based on the above discussion the decision maker decided that these claims should be treated under the LHA rules.

Sage Housing Limited are now querying this decision. They exempt they are not a housing association as defined in the Housing Associations Act 1985. However, given the wording of Regulation 13C (5) of the Housing Benefits Regulations 2006, they would query the statement that claims made in respect of Sage’s tenancies must therefore be assessed under the Local Housing Allowance rules.

The regulation provides that:

…[maximum rents (LHA)] do not apply in a case where –
(a) the landlord is –
(i) a registered social landlord,
(ii) a non-profit registered provider of social housing, or
(iii) in relation to a dwelling which is social housing (within the meaning of sections 68-77 of the Housing and Regeneration Act 2008), a profit-making registered provider of social housing.

I’m currently reviewing the decision and would appreciate any guidance on how we should be treating them and how any other Local Authorities are treating claims from Sage tenants.