You are viewing 1 of your 1 free articles
Rent cut will not stop conversions to affordable rent
Housing associations will be allowed to convert socially rented properties to affordable rent under the new rent regime – despite confusion over the wording of the new welfare bill.
The welfare reform and work bill – published last week – introduced a reduction in social housing rents by 1% for the next four years.
Under section 19(4) of the bill, social landlords are restricted from increasing the rent when new tenants move in.
Many commenters, including top sector lawyers, had assumed this provision would rule out conversions from social to affordable rent when a property becomes void – because this process would usually involve substantial rent increases.
But the Department for Communities and Local Government (DCLG) confirmed this week that conversions will still be allowed, with the mechanism for doing so to be set out as the bill progresses.
Conversions to affordable rent have been a key part of the affordable homes programme since 2011, to allow associations to raise cash for new development.
A DCLG spokesman said: ‘Housing associations will still be able to convert socially rented void units to affordable rent through the affordable homes programme. The rental reductions will then apply as if the unit had been an affordable unit not a social unit.
‘The mechanism for allowing the conversion through the new rent policy will be set out as the welfare reform and work bill progresses.’
UPDATE: 15.07.2015, 12.00pm
The headline of this story was altered to make it clear the story is about conversions to affordable rent.
