Under most construction contracts, the contractor takes on the ground conditions risk. However, a recent case has demonstrated that the risk can fall on the employer.
This has the following implications:
- There is now no required rent level;
- The definition of an intermediate rent is different from what was the old Intermediate Market Rent (IMR) as the service charge is included in the definition of market rent – i.e. in practical terms it is the same as an affordable rent;
- Since intermediate rents are outside the Regulatory Code it is for providers, in line with their Tenancy Policies, to decide what tenancy to offer customers on the expiry of any fixed term (noting anything that might have been offered to the customer at the outset – the plain english guide states:
"provided you pay your rent on time and keep to other conditions of the agreement you can live there for much longer"
For more information
For further information, contact Emma Duke on 0121 214 3617 or email@example.com.
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