The Social Housing Rents (Exceptions and Miscellaneous Provisions) (Amendment) Regulations 2017

EXPLANATORY NOTE

(This note is not part of the Regulations)

The Social Housing Rents (Exceptions and Miscellaneous Provisions) Regulations 2016 (“the Principal Regulations”) (besides other things) made provision for exceptions from the social rent requirements introduced by section 23 of, and Schedule 2 to, the Welfare Reform and Work Act 2016 (“the Act”) (c. 7). Of particular relevance is that the Principal Regulations excepted from the social rent requirements and made provision for the maximum rent that may be charged for almshouse accommodation and accommodation provided by a co-operative housing association, a fully mutual housing association or a community land trust (“almshouses etc”) and for supported housing, the effect of which was essentially to defer the effect of the introduction of the social rent requirements of the Act by a year. The Principal Regulations also excepted intermediate rent accommodation the definition of which included accommodation funded by an intermediate rent accommodation enabling programme named in the regulations and defined affordable rent housing.

These Regulations amend the Principal Regulations. Notably they amend certain of the exceptions made by the Principal Regulations and related provision regarding maximum rents for those cases and make provision for exceptions in circumstances where a provider is under housing administration or accommodation has been sold by a housing administrator.

Regulation 3 amends the definitions of “intermediate rent accommodation enabling programme” and “affordable rent housing” by clarifying the name of the 2016 – 2021 affordable homes programme and by adding additional programmes.

Regulation 4(1) adds a definition of “domestic violence refuge accommodation” (“DVRA”) – a category of accommodation which is a sub-set of supported housing.

Regulation 4(2) extends the exceptions from section 23 applicable to DVRA and almshouses etc. Those exceptions will now apply for all four relevant years. It also makes consequential amendments to the exception for supported housing.

Regulation 4(3) excepts DVRA as a stand-alone case from Part 1 of Schedule 2 and makes consequential amendments to the exception for supported housing to exclude DVRA.

Regulation 5 amends regulation 9 of the Principal Regulations which makes provision for the maximum rent which may be charged for supported housing (including DVRA) and almshouses etc. by modifying section 23 of the Act. Regulation 9 will now provide that when one of those exceptions applies the maximum rent which a provider may charge a tenant in respect of a relevant year is the rent payable for the preceding 12 months uplifted by CPI + 1% (where CPI is the change in the consumer prices index over the 12 months up to and including the September which falls before the 31^st March immediately preceding the relevant year). The effect of the provision regarding maximum rents in the first relevant year is unchanged because for that year CPI + 1% is 0.9%.

Regulation 6 inserts new regulations 11A and 11B in the Principal Regulations. This modifies the effect of Part 1 of Schedule 2 to the Act for DVRA. The effect is to enable the initial rents of such accommodation to be set at a higher rate and for their rents to be uplifted by CPI + 1% in a subsequent relevant year. Similarly the rent of DVRA which is affordable rent housing may be increased by CPI + 1% in a subsequent relevant year. The effect of the alternative provision regarding maximum rents in the first relevant year is unchanged because for that year CPI + 1% is 0.9%.

Regulation 7 amends regulation 13 of the Principal Regulations which modifies the effect of Part 1 of Schedule 2 for almshouses etc. The effect is to enable the initial rents of such accommodation to be set at a higher rate and for their rents to be uplifted by CPI + 1% in a subsequent relevant year. Similarly the rent of alsmhouses etc which are affordable rent housing may be increased by CPI + 1% in a subsequent relevant year. The effect of the provision regarding maximum rents in the first relevant year is unchanged because for that year CPI + 1% is 0.9%.

Regulation 8 makes provision for exceptions to the social rent requirements of the Act to apply to the accommodation of a private registered provider where a housing administration order is in force or accommodation which has in the past been sold or otherwise disposed of by a housing administrator.

Regulation 9(1) clarifies the position under regulation 10 of the Principal Regulations (modifications of Part 1 to Schedule 2 applicable to supported housing) where a tenancy of affordable rent housing comes to an end or the supported housing ceases to apply after part of a relevant year to which the modification to the provisions of the Act contained in inserted paragraph (1A) applies.

Regulation 9(2) corrects a typographic error in paragraph 6 of the Schedule to the Principal Regulations.

A full regulatory impact assessment has not been prepared for this instrument as no impact on business or the private or voluntary sector is foreseen.