Presentation on theme: "Affordable rents: WHG experiences so far Presented by Anthony Riley (Group Director of Development & Operations) Gurmeet Virdi (Director of Operations."— Presentation transcript:
Affordable rents: WHG experiences so far Presented by Anthony Riley (Group Director of Development & Operations) Gurmeet Virdi (Director of Operations – East Midlands)
Contents Finance – how does the programme stack up for WHG Delivery - What does it look like for WHG Affordable Rents –contemporary data on rents across the region for WHG Affordable Tenancies – feedback from customers of WHG Policy – what is next?
Finance: why are we doing them?
Finance: the HCA criteria Up to 80% of market rents Inclusive of service charges Linked to new fixed term tenancy agreements Must include some conversions Rents to be rebased on re-let (or renewal of tenancy) Can be increased by up to RPI +0.5%
Finance: the WHG criteria New tenure: Renewable 5 year AST Assessment of voids for conversion to affordable rent Capping increase at +25% current social rent (re-lets only) and < £20 pw < 95% LHA (re-lets and new build) Used staff and local RICS Agents, not Zoopla, Savills Target 200 conversions from Social to Affordable Rent per annum
Delivery : Total referrals (Sept 2011 - Aug 2012)
Delivery : WHG – returned as SR
Delivery: Lettings (Oct 2011 to end Aug 2012) Q)Average length for a SR tenancy? Q)% rental increase in real terms? Q)Number of refusals? Association Number let as conversions Average income increase per property per week WHA35£10.41 DMHS27£8.83 NLHT62£8.92 TOTAL124
AR v the market rent: an analysis of the market rents in Leicester and Nottingham Property size Rent (PCM)DepositAll charges TOTAL (for first month) Averages for 1 B/R £492£595£203 £1,289 Averages for 2 B/R £558£704£274 £1,536 Averages for 3 B/R £648£759£313 £1,720
AR v the market rent: an analysis of the market rents in Leicester and Nottingham Property sizeAverages for 1 B/RAverages for 2 B/RAverages for 3 B/R Rent (PCM)£492£558£648 Deposit£595£704£759 All charges£203£274£313 TOTAL (for first month)£1,289£1,536£1,720 equivalent increase per week*£6.53£7.22£7.58 equivalent increase per calender month*£28.30 (5.8%)£31.30 (5.6%)£32.87 ((5.1%) *for a joint tenancy renewed annually with one change per year over 5 years
AR v market rent additional costs on top of advertised rent and deposit Schedule Of Indicative Charges Charge DescriptionDetailsAmount Extension Fee per tenantFor each fixed term extension£75plus VAT per tenant Extension Fee per tenancyFor a periodic tenancy £150 plus VAT Check Out Feededucted from deposit£75 plus VAT Late Payment of Rent1st offence !!£75 plus VAT Late Payment of Rentall subsequent offences£150 plus VAT Premature cancellationdue if you cancel your instruction of Standing Order without landlord's permission£150 plus VAT
AR v market rent ……more costs Schedule Of Indicative* Charges Charge DescriptionDetailsAmount Amend Tenancy Feeto change tenants mid tenancy £300 plus VAT to change tenants at end of tenancy£150 plus VAT Add permitted occupier to existing tenancy £50 plus VAT Early Vacationcontact office for details1months rent Late Return of Keysat the end of Tenancydaily rent rate Maintenance Call OutUser Error£75 plus VAT Maintenance Call OutNon emergency out of hours**£150 plus VAT
Affordable tenancies – Feedback so far 1.Any negative responses to offers of an A/R tenancy? 2.Have tenants queried why the rent is higher? 3.Have tenants queried the fixed term nature of tenancies? 4.Have there been any post sign up queries about why neighbours (social tenants) pay less rent? 5.Are tenants generally happy with this tenancy type? 6.Has there been any raised expectations from A/R and if so, what have these been?
Affordable tenancies - feedback Results of NLHT survey
Policy: What happens at the end of the 5 year fixed term? (1) In the vast majority of cases a new fixed term tenancy will be issued. Exceptions are: Where it would breach charitable status (e.g where income is high) Where property under occupied by more than 1 bedroom Where breach of tenancy has been identified Rent will be rebased to make sure it is no more than 80% of market rent at that time
Policy: What happens at the end of the 5 year fixed term? (2) Tenancy would be formally reviewed at least 6 months before it is due to end. Usually at 4 years 3 months into tenancy Aim to assess continued eligibility as outlined above Report to be made to manager if as a result recommending termination of tenancy If decision to end at least 6 months notice of termination needed and advice and assistance must be given to help tenant find alternative accommodation WHG likely to resolve issue of downsizing Appeal process is established in procedure
Policy: Where is it heading? 30/3/12 Minister hints at Affordable Rents repeat Montague review Housing and Growth package stimulus
Affordable Rents – so far questions or comments