Privately financed supported housing

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    Anonymous
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    Has anyone come across any of these type of tenancies where a registered provider has acquired an old care home or similar type of property from a local or health authority and is charging significantly high rents but not providing any care/support/supervision as this is being provided by social services but they have engaged a provider to buy the property and provide the housing?

    We are looking at rents 3 times the formula but the provider is claiming they do not need to apply the formula based on an old housing circular 05/03 which details;

    Privately financed supported housing
    Section 5.18 of our published guidance on implementing the rent restructuring
    framework states that supported housing developed with high levels of private finance,
    in partnership with local or health authorities, falls within the rent restructuring
    framework.
    After discussions with a number of government departments, and some of the
    associations that are developing such schemes, agreement has been reached to exclude
    schemes from the rent restructuring framework where all of the following criteria are
    met:
    · the scheme offers a high level of support for clients, for whom the only acceptable
    alternative public or voluntary sector options are care homes; and
    · no, or negligible, public subsidy, has been received, whether in the form of grant or
    free land; and
    · the scheme has been commissioned in line with local health, social services or
    Supporting People strategies and priorities, (but which are not of sufficiently high
    housing priority as to receive Social Housing Grant).

    The housing provider has no duty or responsibility for providing the support so it appears unclear as to whether the first criteria is met.

    I haven’t yet looked as to whether the financing costs are made excessive by mortgaging the property over a shorter period than 25 years or anything like that but am keen to get a feel for anyone else’s thoughts or approach to these schemes.

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