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
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.
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.