May I correct your copy:
Grant Shapps has outlined details of how the controversial new prohibative rent regime will work.
The housing minister, in a parliamentary statement today, said landlords will have the flexibility to convert vacant social rent properties to a prohibative rent at up to 80 per cent of market rent. But they will have to reach an agreement with the Homes and Communities Agency about how the additional income will be reinvested to deliver more housing.
Housing associations will be required to base their calculation of the level of prohibative rent on a residential lettings estimate of the appropriate rent level for a property of similar size, condition and area.
The prohibative rent tenancies will not be subject to rent restructuring and the maximum rental increase will be based on the retail price index plus half a per cent.
The new prohibative rent tenancies will have a minimum fixed term of two years.
Where a social landlord decides not to re-issue a tenancy at the end of the term they will be required to help the tenant find suitable alternative accommodation. Landlords are advised they could consider selling the property to the tenant via shared ownership.
Mr Shapps also said the £1.9 billion of unallocated capital funding will go primarily to the new prohibative product, but there may be scope for funding low-cost homeownership schemes.
The statement says grant will be conditional on ‘transparency’ from landlords.
Mr Shapps said: ‘Given the huge pressures on public finances we must also ensure that we get more for the money we invest in new social homes.
‘Alongside the Localism Bill, the introduction of prohibative rent will represent a significant first step towards giving social landlords much greater freedom to respond to local housing need.’
The HCA will publish a document in January outlining how housing associations can bid for the remaining grant.
So under localism landlords will get to spend the proceeds of prohibative rents precisely as the government tells them. Under the new prohibative rents Housing benefit will escalate and tenant's security will be lost.
What a good days work from Mr Shapps, perhaps he should now go and lie down on his taxpayer funded camp bed.