social housing
📖 What is social housing? Meaning and definition
Social housing is a type of rented accommodation provided by social landlords, which typically includes basic amenities like a functional kitchen and bathroom, but may not include items such as curtains, carpets, or white goods. The rent for social housing is often significantly below the market rent that would be charged by private landlords, partly due to capping regulations imposed by a regulator.
When a rent for a social housing property is being determined, such as under Section 14 or Section 13 of the Housing Act 1988, the valuation process considers what the property might reasonably let for in the open market under an assured tenancy. However, it specifically ignores any improvements made by the tenant and any decrease in value due to the tenant's failure to comply with tenancy terms. The property is valued as it stands, assuming a reasonable internal decorative condition.
It's important to note that the rent paid by other social housing tenants of Registered Providers is generally not considered relevant when determining the market rent for a specific property. This is because the Tribunal focuses on the open market value, rather than internal comparisons within the social housing sector, especially without full details of other leases and rent calculations.
Sometimes, a valuation for social housing might involve calculating a market rent and then applying a percentage, such as 80%, to reflect its status as a social housing asset. Tenants typically have responsibility for internal decoration and repairs, and the landlord may supply items like carpets, double glazing, and central heating.
📋 Requirements
- The property is let by a social landlord.
- The rent is subject to capping regulations set by a regulator.
- The property is valued as it stands, assuming reasonable internal decorative condition.
- Tenant improvements are disregarded when determining market rent.
- The valuation is for an assured tenancy on the same terms as the actual tenancy.
📝 Procedure
- A notice of increase is issued, proposing a new rent.
- The Tribunal determines the rent based on what the property might reasonably let for in the open market.
- The Tribunal considers the property's condition, disregarding tenant improvements.
- The Tribunal takes into account the terms of the tenancy, such as tenant responsibility for internal decoration.
- The Tribunal directs the new rent and its effective date.
💡 Examples
- A tenant living in a one-bedroom social housing flat with a basic kitchen and bathroom might have their rent adjusted by a First-tier Tribunal.
- The Tribunal determined a market rent for a social housing property, noting it was significantly below what a private landlord would charge due to regulatory caps.
- When valuing a social housing property, an independent valuation might indicate a market rent, which is then reduced by a percentage to reflect its social housing status.
- A tenant's rent for social housing was increased from £214.51 to £231.03 per week, effective from a specified date, following a Tribunal decision.
📚 Legal basis
- Housing Act 1988
❓ Frequently asked questions
What is the difference between social housing and private rented housing?
Social housing is typically provided by social landlords, often at rents below market rates due to regulatory caps. Private rented housing is let by private landlords at market rates, without such specific rent regulations.
Are tenant improvements considered when my social housing rent is reviewed?
No, when a Tribunal determines the market rent for social housing, any improvements you have made to the property are generally ignored in the valuation process.
Can my social housing rent be increased?
Yes, your social housing rent can be increased. A Tribunal may determine a new rent based on what the property could reasonably let for in the open market, even if it's still below typical private market rates.
Does the condition of my social housing property affect the rent valuation?
The property is valued as it stands, assuming it is in a reasonable internal decorative condition. However, any improvements you made are disregarded, and any decrease in value due to your failure to comply with tenancy terms is also ignored.
What if my neighbour in social housing pays a different rent?
The rent paid by other social housing tenants is generally not considered relevant by the Tribunal when determining the market rent for your specific property, as the focus is on the open market value.