Terms & Conditions

[rds01]

Hi, we have an extra scheme which is supposed to be “affordable rents” but the service charges appear to be extremely high. I have been asked if affordable rents can still add service charges to the core rent? There are also communal/extra facilities like kitchen, laundry, restaurant and recreation areas included in the core rent. Any advice? Thanks in advance.

[peterdelamothe]

Affordable rent is rent that is set at up to 80% of market rent (including service charges).These properties of affordable rents are defined as ‘low cost’ rental accommodation and and so also class as ‘social housing’. This means that they are regulated by the Regulator of Social Housing.

Well that is the definition published by government anyway! What type of landlord and how high are these charges and what is included.

[rds01]

The landlord is a RP (Place for People) and the rent is core rent of £187pw and eligible services charges of £147pw. This is considerably higher than other Extra Care schemes in our area, which are £133pw and LA owned) and this is higher than our understanding of what the 80% level is? Thanks

[Peter Barker]

I wouldn’t worry about the 80% as it’s not really an HB matter. They will have applied their methodology, which might for example involve comparing the scheme with high-end mixed tenure retirement villages around the region, and in theory the regulator is content that their methodology is robust. It’s not our job to police the regulation of social housing.

However, HB does contain provisions to restrict unreasonable rents in various ways:

– If you consider the rent payable for the dwelling to be unreasonably high, you can (indeed must) get an RO determination and, if this is not exempt accommodation, HB will be limited to the LRR
– If this is exempt accommodation and you consider the rent to be unreasonably high compared with suitable alternative accommodation which is available, you can restrict the rent to whatever amount you consider reasonable. Good luck with that though – the evidence burden is almost impossible to satisfy.

[Andy Thurman]

“If this is exempt accommodation and you consider the rent to be unreasonably high compared with suitable alternative accommodation which is available, you can restrict the rent to whatever amount you consider reasonable. Good luck with that though – the evidence burden is almost impossible to satisfy.”

You really don’t want to succeed in such circumstances either! If you were to do so, you would end up with a subsidy loss/local cost as a reward for your effort…

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