Affordable rent tenancies policy

We are committed to a fair and transparent lettings process that promotes stable and sustainable communities. We also aim to ensure all our residents have secure and stable tenancies and receive the support they need to maintain their tenancies and remain in their home.

Our commitment to you

We are committed to ensure all our residents feel safe and secure in their home. We will utilise a variety of different letting options including Affordable Rented properties, to meet housing need and create balanced, sustainable communities in the areas of our operations. 

We will maximise its resources including access to grant and reinvesting rental revenue above and beyond operating costs, to improve the condition and increase supply of low-cost housing in the areas of its operations.

Our affordable rent homes will be offered for the properties where we hold a delivery agreement for new supply of social housing under Homes England as well as existing properties converted to affordable rent under the affordable rent programme. The extra revenue raised from these Affordable Rents will be directly reinvested into building new homes for those individuals and families on the housing waiting list.

What is affordable rent?

Affordable rent is defined as rent that can be charged on a property up to 80% of the local market rent which is based on an average of privately rented properties. If the rent exceeds the Local Housing Allowance (LHA) for the property, rent will be capped at the LHA.

Our affordable rent tenancies offer a one-year probationary tenancy with conversion rights and a provision for a five-year review of a resident’s circumstances. At the end of this review period, we will review the resident’s circumstances based on the affordability of the rent and the ongoing housing need of the household.

This policy does not affect current residents with other tenancy types, unless they chose to move. It only applies to our general needs homes, not supported, retirement or extra care homes.

Tenancy Changes and Mutual Exchanges

Decisions regarding tenancy changes and mutual exchanges will be in accordance with existing policy and procedure set within the CKH Lettings policy, Tenancy Management policy and the mutual exchanges procedure.

Mutual exchanges with tenants holding different tenancies will not be completed by assignment. To ensure that the incoming tenant has the full benefit of the review period the change will be carried out by surrender of the outgoing Affordable rent tenant and awarding of a new Affordable Rent 1 year probationary with conversion rights tenancy to the incoming tenant.

How we review affordable rent tenancies

Five Year Review

After first five years of a tenancy there will be a further review to assess your ongoing need for a social affordable housing tenancy.  The review will cover three stages that focus on the needs of the household.

The Neighbourhood Manager will conduct this review based on the information we hold about you and your household. If we need any further information at this stage we will contact to you.

Stage 1 - Property Size

We will ensure that you are adequately housed with regards to your household size, composition, and ages of members of the household in accordance with the bedroom standards in the housing allocation policy. If the home is under occupied or overcrowded, we will assist you in registering to transfer to a more suitable home.

All residents on housing benefit (full or partial), who are adequately housed, will have their Affordable Rent tenancy renewed for a further term of five years.

Stage 2 – Social and Support Needs

Where your household is assessed to not be adequately housed, we will carry out an assessment of need based on the following factors:

• The longer-term needs of vulnerable residents such as your capacity to seek and move into alternative accommodation in the private rented sector or housing market.
• Avoiding disruptive changes to families with children, such as children moving school
• If the family has a support network nearby.
• If residents have severe or multiple debt problems and a move could worsen these problems, or the cost of moving would be prohibitive.
• Ensuring residents facing domestic abuse are supported in their current accommodation.
• The longer-term needs of older people
• The requirements for people with long-term illness or disability including mental health conditions or learning difficulties.
• If the home has been specifically adapted for a member of the household.
• Other specific needs of the household for example substance addiction where a move could worsen these problems.

Each case will be considered on an individual basis and where support needs or social factors determine that it would be detrimental for the tenancy to be ended, the affordable tenancy will be renewed for a further term of five years. You will be asked to show evidence of these needs, including medical assessments, as appropriate.

Stage 3 – Affordability

An affordability assessment will be carried out. This will be based on the approved model setting the income threshold at 15% of the total gross annual household income.

The calculation guide below shows an indicator based on the rent set at the current Local Housing Allowance (LHA) rate 31 January 2024. These rates are set by the government and are the total amount of rent that can be paid via Universal Credit or other benefit.

You will be required to complete a financial statement and will be asked to provide necessary documentary proof. Savings will be accounted for with a notional income of £1 for every £300 above savings of £3,000 applied.

If you are in full time or part time work and not in receipt of Universal Credit or Housing Benefit, we will need to be satisfied that you cannot afford to move into the private housing market and is still in need of social housing.

This means that if your rent costs are 15% or less of your total gross annual household income you will be subject to consideration of a notice to end your tenancy. If this happens, we will assist you with help and advice to access all other housing options we have available at the time including low-cost home ownership opportunities and market rent properties.

What happens if your Affordable Rent Tenancy is not renewed

If you fail to meet the standards required at any stage of the review we will send you a ‘minded to’ non continuation notice. This letter details the reasons why the decision has been made and gives you advance notice that a Section 21 Notice will be served.

We will then visit you and deliver a non-continuation letter. During this visit we will give you information, advice, and guidance on your options, as well as guidance on how to appeal the decision.

If you wish to request to make an appeal, you must do so within 28 days of receiving the ‘minded to’ notice.

Where an appeal is received a hearing will be convened to allow you an opportunity to state your case. You will be allowed to bring legal or other representation to the hearing. If the original decision is upheld we will send you a detailed explaining the decision. No further appeals will be permitted.

The final decision will rest with the Assistant Director of Operations.

If, after the assessment decision is communicated, you refuse all attempts to follow our advice, guidance and assistance in finding alternative, more suitable accommodation, we will start legal action. Each case will be considered on an individual basis and then on its merits to ensure that any decisions made are appropriate and proportional.

What happens if your Affordable Rent Tenancy is renewed.

How an Affordable Rent Tenancy can be ended outside of the review process

You can end your tenancy by giving us four weeks notice. Tenancy surrender can be agreed in exceptional circumstances and where there will be no associated rent loss to us.

If you do not occupy the home as your only or principal home you will lose your status as an Assured Shorthold tenant and we will give you four weeks notice that we will be ending the tenancy.

In cases where you have breached one or more tenancy conditions you will be served with a Notice of Seeking Possession (known as a NOSP or Section 8 Notice) which explains the reasons why we are seeking possession and sets out, one or more of the grounds in Schedule 2 of the Housing Act 1988.

Further information

Who is responsible for managing the Affordable Rent Tenancies policy?

Legislation and regulation

Information sharing

Monitoring and review