Reply To: Leased Supported Exempt accommodation properties

#287327
Leonard Payne
Participant

A couple of points for starters

what is the ‘affordable rent methodology’?

In what way is your provider ‘taking advantage?’

Using the Reg 9(1) nuclear option is really about cases where even having any rent to pay is seen as exploiting the system rather than restricting the actual amount.

Now I may be barking up the wrong tree as your facts may be different but relying on Baragrove might be a waste of effort.

Of more importance, IMHO is the Greenhey case CH/0577/2009.

Judge Turnbull made the following comments in para 62

“it seems to me that a more practicable method of seeking to demonstrate abuse may be to demonstrate that the rent is significantly higher than reasonably necessary to cover costs. The rationale underlying the more favourable regime is that costs are likely to be higher in relation to supported accommodation, … In para 41 of CH/39/2007 Mr Commissioner Jacobs said “there is no objection to making of a profit from the housing benefits scheme. If there were, there would be no market for tenants who required public financial support for their housing costs.”

I guess you have to look at the actual costs of running to see whether there truly is abuse.

Hope that helps