Devon Home Choice

News - Affordable rent

News

The Government has made some important changes to social housing. Some homes will be let at higher rents (up to 80% of private market rents), and some will have a fixed term tenancy (for example, 5 years). This will be made clear on homes being advertised.

The higher rent that will be charged for some homes is called 'Affordable rent' by the Government.

Please find below some questions and answers that provide further information on affordable rent:

1. Why is it being called ‘affordable rent when it will actually be higher?

Affordable rent is the Governments term that is being used nationally.  We are using the same term to avoid any confusion.

2. Why is the rent charged on some homes going to be the new, higher affordable rent?

The Government has introduced a new way of paying for housing associations to build extra homes. The extra money raised by charging the higher 'affordable rent' on some existing homes will be invested into building new homes.

There is a real shortage of council and housing association homes in Devon, as in other parts of the country. There are far more people seeking a council or housing association home in Devon than there are homes available. In order to try and meet this need, and develop new homes, we must introduce affordable rent in line with the new Government regulations.

3. Which homes will be charged the higher rate? How will I know if it affects me?

The higher rent will be charged for newly built homes and some existing homes that are being re-let. The rent level for all homes advertised through Devon Home Choice will continue to be clearly set out in the adverts. 

Please check the rent being charged and that you can afford it before bidding for any home.  

If you are an existing council or housing association tenant you will NOT be affected, unless you choose to move another home which is subject to the affordable rent. Your rent will continue to be charged in the normal way, with annual increases applied in the normal way.

If you choose to move to another home, particularly a newly built home, you may be affected.  If this happens we would talk to you about how you could be affected before you move.

4. How much higher will affordable rent be?

There is no fixed amount for affordable rent. Affordable rents are based on the rent charged for private rented homes.

Under current rules the new affordable rent rate will always be less than the market rental value of the same property.  It will be no more than 80% of the market value. So, like current social rent, an affordable rent will still be cheaper than renting privately.

5. Will the homes let at a higher rent mean a better standard for the tenant?

All council and housing association homes advertised and let through Devon Home Choice must meet a certain letting standard, regardless of whether they are subject to the new affordable rent or not.