
Happy New Year - our first newsletter of 2021! Throughout this year we will continue to bring you news and developments relating to the charities sector.
Together with the recent publication of the September Consumer Price Index (CPI) figure, the final pieces of the jigsaw are now in place for registered providers (RPs) to start their rent review process.
The new framework
The new Rent Standard forms part of the new framework for RPs from April 2020 once they have completed the four years of the rent decreases required under the Welfare Reform and Work Act 2016.
The framework is made up of:
This framework will apply for the next five years. This is the first time local authorities have had to comply with the Rent Standard - failure to do so could have regulatory consequences for landlords.
As expected, the final form of Rent Standard has not changed substantially from the form that was consulted on.
CPI
The annual change in CPI for September 2019 was 1.7%. So the maximum increase RPs may apply to its low-cost rental accommodation is 2.7% (CPI +1%). Local authorities must also ensure rents do not exceed the registered rent for particular properties.
The Policy Statement sets out the properties that fall outside the CPI + 1% restriction. The definitions should be carefully checked to ensure the intended exception applies.
What to do now?
Local authority landlords should now take the following steps:
How can we help
We can help you implement the new framework in the following ways:
If you would like further details about any of the services we offer in connection with rent reviews or a link to our recent webinar on this topic, please contact Emma Hardman.
Happy New Year - our first newsletter of 2021! Throughout this year we will continue to bring you news and developments relating to the charities sector.
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