One Housing Group – Affordable Rent Strategy
1.
Introduction
This statement sets out One Housing Groups (OHG) position on Affordable Rent. It sets out
some guiding principles on Affordable Rent and covers the affordability thresholds supported
by the Group
2.
Background
The aim of Affordable Rent is to assist in the delivery of new social housing and provide an
offer which is more diverse for the range of people accessing social housing, providing
alternatives to traditional social rent. Affordable Rent is part of a package of new measures
announced to create a more flexible social housing sector. ‘Local decisions: a fairer future for
social housing’ published in November 2010 proposed a new form of tenancy, giving local
authorities greater control over who is able to apply for and is eligible for social housing and
discharge of homeless duty into the private rented sector. This greater flexibility is equally
important for Housing Associations. It is very relevant to OHG in the context of our corporate
objectives to provide balanced sustainable communities and neighbourhoods of mixed
income and mixed tenure.
3
Rent Policy Guiding Principles
In considering our policy response to the changed political landscape and the new freedoms
within it, we have approached the development of our affordable rent policy as one which
should:
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Target those households on low to average incomes that are currently excluded from
our social housing or home ownership products.
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Support aspiration and social mobility among our residents
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Help mix and in some instances re-balance our communities such that we house a
range of people on different levels of income
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Increase our capacity to fund further development of new homes
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Relate to the market in a coherent, consistent and realistic way.
e.g. - Larger
properties should cost more to rent than smaller properties; homes in high value
areas should cost more to rent than those in low value areas.
•
Consider welfare reform in this process
4
Main Characteristics of Affordable Rent
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It is a form of social housing and is part of a new funding model for affordable housing
delivery
We are able to convert vacant social rented properties to Affordable Rent at a proportion of
up to 80% of gross local market rent (inclusive of service charges) for an equivalent property
for that size and location. The National Affordable Homes Programme 2011-15 Framework
states that there are circumstances where less than 80% may be appropriate: These include:
In properties where rents are close to or exceed Local Housing Allowance (LHA) caps.
For regeneration schemes where prior commitments have been made
Specialist housing for the elderly and those on fixed incomes
Conversion of tenancies is subject to being in contract with the HCA and additional income
will assist in the funding new supply. OHG is in contract with the HCA
Affordable Rent tenancies will have minimum fixed tenancy periods of five years. Full details
are published in our Tenancy Policy
Affordable Rents will be set using approved RICS methodology taking into account, location,
property size and condition. During the tenancy period, rents will increase by RPI +0.5 per
year
Housing Benefit payments for Affordable Rents will be based on actual rents.
Lettings to affordable rented homes will be will be targeted towards specific groups
consistent with our tenancy policy.
The changes are accompanied by welfare reform, with a universal credit replacing current
benefits from 2013. This will be capped at £350 for a non working single person and £500 per
week for a non working couple or family.
Affordable homes programmes will be designed to meet local priorities established in partnership
with local authorities and through our Resident Involvement Framework and the Area Boards