Details of tenancy overhaul unveiled
Housing minister Grant Shapps has launched the government’s new affordable rent regime.
The Homes and Communities Agency has published a framework document giving details of how the scheme will work.
Under the new tenure, social landlords will be able to offer fixed-term tenancies at up to 80 per cent of local market rent. At present tenancies are for life, and are generally set at a lower rate.
The extra revenue raised is intended to help landlords build 150,000 homes over the next four years, alongside 1.8 billion of government investment.
Landlords will only be able to offer the tenancy to new tenants.
Mr Shapps said: ‘This new scheme will provide new affordable homes which could help some of the millions of families currently on housing waiting lists, let down by a rigid, outdated system that is failing to meet their needs.
‘But this scheme is also part of the most radical reforms to social housing for a generation, vital to ensuring that as many people as possible benefit from this valuable resource.’
Pat Ritchie, chief executive of the HCA, said: ‘This new approach gives increased flexibilities for local authorities and providers to plan ahead and deliver much-needed affordable homes.
‘At a time when funding is tight, this new way of operating will allow us to do more with less resources, but it will rely heavily on effective working partnerships, which is where the HCA will play a significant part.’