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ARCH annual report


The ARCH annual report for 2015-16 is now available to view.


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Pay to Stay: Methodology for setting market rents 21/07/2016

Before he was replaced in the Government reshuffle, Brandon Lewis announced that it will be up to local authorities on how they determine a market rent for the purposes of pay to stay.


In a written answer to a Parliamentary question tabled by John Healey MP where he asked what methodology the Government planned to use to determine the market rents of social housing properties for the purposes of the pay to stay policy, Housing Minister Brandon Lewis on 5 July replied:


"The Government believes that it is only fair that tenants who benefit from low social rents, but who are on higher incomes and can afford it, should contribute more. For those council housing tenants who are subject to the policy, the majority will not face a full market rent, but will instead pay a higher rent on a graduated basis using an income taper (set at 15% of income above the threshold). In those cases where a full market rent is payable, it is for the local authority to decide on a methodology for determining market rent appropriate to their particular area. My Department will be supporting them through this process with advice and guidance."


As previously reported it was understood that the draft Regulations and Guidance on pay to stay was to be published this month (July 2016).


ARCH believes the timetable for introduction of pay to stay is too tight and that there is a case for delaying implementation - particularly if there is any delay in publication of the draft Regulations and Guidance.


We previously asked to hear from councils who have concerns about the timetable and any difficulties to implement pay to stay by April 2017. If you haven't been in touch with us yet, please do so as soon as possible.

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