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Affordable Rents: WHG Program Review by Anthony Riley & Gurmeet Virdi

Dive into the financial structure, delivery statistics, and feedback on affordable rents at WHG. Get insights on the policy direction and future plans from Anthony Riley and Gurmeet Virdi.

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Affordable Rents: WHG Program Review by Anthony Riley & Gurmeet Virdi

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  1. Affordable rents: WHG experiences so farPresented by Anthony Riley (Group Director of Development & Operations)Gurmeet Virdi (Director of Operations – East Midlands)

  2. Contents • Finance – how does the programme stack up for WHG • Delivery - What does it look like for WHG • Affordable Rents –contemporarydataon rents across the region for WHG • Affordable Tenancies – feedback from customers of WHG • Policy – what is next?

  3. Finance: why are we doing them?

  4. 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%

  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

  6. Delivery: Total referrals (Sept 2011 - Aug 2012)

  7. Delivery : WHG – returned as SR

  8. 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?

  9. AR v the market rent:an analysis of the market rents in Leicester and Nottingham

  10. AR v the market rent:an analysis of the market rents in Leicester and Nottingham

  11. AR v market rentadditional costs on top of advertised rent and deposit Schedule Of IndicativeCharges Charge Description DetailsAmount • Extension Fee per tenantFor each fixed term extension £75plus VAT per tenant • Extension Fee per tenancyFor a periodic tenancy £150 plus VAT Check Out Fee deducted from deposit £75 plus VAT • Late Payment of Rent 1st offence !! £75 plus VAT • Late Payment of Rent all subsequent offences £150 plus VAT • Premature cancellation due if you cancel your instructionof Standing Order without landlord's permission £150 plus VAT

  12. AR v market rent……more costs Schedule Of Indicative* Charges Charge Description DetailsAmount • Amend Tenancy Fee to 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 Vacation contact office for details 1months rent Late Return of Keys at the end of Tenancy daily rent rate • Maintenance Call Out User Error £75 plus VAT • Maintenance Call Out Non emergency out of hours** £150 plus VAT

  13. Affordable tenancies – Feedback so far • Any negative responses to offers of an A/R  tenancy? • Have tenants queried why the rent is higher? • Have tenants queried the fixed term nature of tenancies?  • Have there been any post sign up queries about why neighbours (social tenants) pay less rent? • Are tenants generally happy with this tenancy type? • Has there been any raised expectations from A/R and if so, what have these been?

  14. Affordable tenancies - feedback • Results of NLHT survey

  15. 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

  16. 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

  17. Policy: Where is it heading? • 30/3/12 Minister hints at Affordable Rents repeat • Montague review • Housing and Growth package stimulus

  18. Affordable Rents – so far questions or comments

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