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ARCH annual report

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

 

Download it here.

Update: Relets at Formula Rent and 1% rent reduction 30/10/2015

Stock retained councils have won a small but significant victory in making the case that they should be able to continue to move rents that are currently below the "formula rent" up to the formula rent on re-letting properties to new tenants before applying the one percent rent reduction.

 

We made representations to DCLG officials regarding the impact of the one percent rent reduction on formula rents and argued that councils should be able to continue move rents below formula rent up to the formula rent on relets for new tenants before making the reduction.

 

We're pleased to inform our members that government tabled an amendment to the Welfare Reform and Work Bill in the Committee Stage of its passage through Parliament to enable the rent charged to new tenants on re-lets to be either:

 

  1. The assumed rent rate which should be what the previous tenants paid if it's already at or above formula rent (then minus 1% in the first relevant year), or
  2. The formula rent for 2015/16, minus 1% in the 2016/17 rent year and so on for the following years.

 

Details are set out in an amendment to the Bill which introduces Schedule 2 making provision for the rent initially payable by tenants of social housing whose tenancies begin after 8 July 2015.

 

Proposals to compel stock retained councils and housing associations to reduce rents by one percent per year for the next four years from April 2016 otherwise remain unchanged. However this amendment will at least help those councils who had not reached "rent convergence" and who have a high percentage of rents below the "formula rent" and will enable them to continue to move rents up to the (adjusted) formula rent when void.

 

The Bill received its third reading in the Commons on 27 October 2015 and will now be considered by the House of Lords

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