Spectrum Prepares for Affordable Rent Tenancies
Affordable Rent Tenancies are on their way
The government is introducing a new way for landlords such as Spectrum to rent out their homes. The new scheme is called Affordable Rent Tenancies.
It doesn’t affect existing tenancies but it does affect the new homes that we build and some of our homes that become empty. We’ve put together a list of Frequently Asked Questions about the new tenancy below.
What does an Affordable Rent Tenancy mean?
It’s a Government scheme to allow Registered Providers like Housing Associations and Local Authorities to offer rents at 80% of the rents charged in the private sector.
This means that homes will still be more affordable than renting privately but may be more expensive than some of our current rents.
Does it affect all of Spectrum’s home?
No, it’s only on all new homes that we build and around one third of the homes that we re-let – our target is for 90 re-lets each year
Which homes will be affected?
We’re putting together a policy which will identify how properties that will be re-let under the Affordable Rent Tenancy will be selected.
Will our rents suddenly go up?
No, the changes don’t apply to existing tenancies. We can only introduce the Affordable Rent Tenancy when homes are let to new tenants and on new homes that we build.
Similar properties in similar areas may be charged different rents depending on whether the homes are let to existing tenants or have been re-let under the new Affordable Rent Tenancy.
How different will this new Tenancy be?
Although the terms and conditions will be very similar to our assured tenancies, under the Affordable Rent Tenancy residents will be on a fixed term tenancy. The minimum period is 2 years but it will be upto Spectrum to decide how long the tenancy will last. We will do this in consultation with our residents and local authority partners. The current suggestion is 5 years.
The reason why this fixed term has been introduced is to give landlords the opportunity to review the tenancy and to see if the property still suits the needs of the resident.
What happens if the review of the tenancy means that I need to be re-housed?
Spectrum will give you:
- The reasons why the property is no longer suitable for you;
- 6 months notice;
- Help to find another home.
Will Housing Benefit be an issue under the new Tenancy?
Spectrum will try to ensure that the whole rent is taken into account when housing benefit is calculated. We will confirm this.
Why has the Government brought in this new Tenancy?
The Homes and Communities Agency are no longer providing the level of subsidy they used to for Registered Providers to build new homes. The higher rents mean that we can reinvest the additional rent and continue to build much needed homes.
The tenancy is a move away from ‘homes for life’. It offers landlords like us an opportunity to review whether the house is still suitable for the person living in it or if it provides a better home for someone else i.e. a single person living in a large family home. There is a huge need for affordable housing and the Government is trying to ensure that best use is made of the homes that are available.
Will Spectrum be changing its Tenancy Agreements?
Yes, we’re taking the best bits from each agreement that exist within our Group and pulling them into one tenancy agreement. This will come into effect on all new tenancies.
When will the new Affordable Rent Tenancy come into effect?
Spectrum is likely to rent out its first home under the new agreement in January 2012.
What if I have any questions?
Please contact Sandra Wilson, Neighbourhood Services Manager at Spectrum on 0300 777 7837 or email sandra.wilson@westernchallenge.co.uk