Affordable rent is a new tenure introduced by the government. The new tenure allows us to charge a rent of up to 80% of local market rent on new homes built as part of the Affordable Homes programme, and on some homes converted to Affordable Rent when they are empty. Local market rent varies from place to place and reflects the local cost of renting a property privately.
We plan to relet a number of our existing properties on affordable rent tenancies when they become empty. This will generate income that will help us continue to build new homes. Over the next three years we plan to build around 550 new homes specifically for affordable rent.
What does this mean for our residents?
If you are currently a tenant in one of our homes your tenancy and rent will not be affected.
What does it mean for new Southern Housing Group residents?
Affordable rent may be more attractive to working households on low incomes. Applications can come from local authorities, choice-based lettings schemes, zone agents, our current waiting lists and external advertising. New residents will be asked for a deposit and an administration fee to support the cost of references and carrying out the inventory. They will have to supply references and will receive a full inventory when they move in. We may be including additional fittings and fixtures, in recognition of the higher rent charge.
We will charge 60% of market rent in London and 80% outside London. The total amount payable in rent will be no more than 40% of the household’s income.
Will affordable rent residents get the same type of tenancy as existing residents?
No. There will be a fixed-term tenancy for affordable rent homes. This will be a ‘starter’ tenancy for one year, followed by a five-year fixed-term assured shorthold tenancy, providing there have been no breaches of the starter tenancy agreement.
Before the five years are over, we will visit the resident to discuss options with them and check eligibility. They may be in a position to look at shared ownership options and we would be able to offer support with that, or they may sign up for a further five years, or they may move to another type of property.
Will this affect residents if they want to move to another home?
It will only affect current tenants if they choose either to make a mutual exchange with a resident who is already in a home let on an affordable rent tenancy or if they choose to apply to move to a vacant home that will be let on an affordable rent tenancy. We will explain any changes to residents wishing to make these types of move before they make any decision.
When will this be introduced?
We are currently undertaking a trial to assess how best to manage this new tenure.
Where can I find out more information?
The Group’s approach to affordable rent is outlined in our strategy, which is availble to download. Or you can contact the Service Centre and they will send you a copy.
A copy of the handbook is also availbale.