
A group of Anthony Collins Solicitors (ACS) experts from across our various client sectors have gazed into their crystal ball and given us a view on how 2021 is looking.
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) and private registered providers (PRPs) 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 is intended to apply for the next five years.
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 PRPs may apply to its low-cost rental accommodation is 2.7% (CPI +1%). PRPs should also be alert to any contractual restrictions within its tenancy agreements.
The Policy Statement sets out of the properties that fall outside that restriction. The definitions should be carefully checked to ensure the intended exception applies: some very specific requirements mean they are narrower than you may expect.
What to do now?
PRPs should now be taking 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.
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