If RSLs are having a hard time grasping rent restructuring, how will they explain it to tenants?
Even for the most hardened anorak, the government's policy to restructure rents in the social housing sector is complicated.

Restructuring rents over an extended period to 'target rents' or within 5 per cent either side of the target rent, and subject to a rent cap of RPI plus 0.5 per cent, plus or minus £2, is a difficult concept for anyone to get their head around.

Explaining the process to tenants fills many housing associations with dread.

The fact that rent policy is now determined by the government and not the landlord does not make the task easier.

In addition to housing associations' desire to inform tenants of the policy change, the Housing Corporation's guidance expects them to "ensure that all their tenants have information about their rent policy and (rent) plan". So how do housing professionals inform tenants about an issue as sensitive and complicated as this?

First, associations themselves need to understand the new regime.

Senior staff should become familiar with the essentials of the corporation's guidance, Rent influencing regime, and the DTLR's Guide to social rent reforms. The National Housing Federation's Making sense of rents for 2002 and Countdown to rent restructuring are valuable guides to help staff through the detailed process of rent restructuring.

The federation is also setting up a resource area on its website with links to all the relevant information, and a discussion room for members to exchange views and approaches.

Front line staff and those involved in implementing the changes should also have an adequate understanding of the regime to field questions or concerns from tenants.

Managers may also wish to set up training sessions to explain the reasons for rent restructuring, to outline the changes and their impact, and to answer questions. Different landlords could combine training sessions to share any costs involved.

As well as understanding the overall approach, housing associations need to know what the implications will be for their tenants' rents.

Using a tool such as the federation's rent estimator can give a general impression on where rents may be heading, but it is only after calculating individual target rents that housing associations will be able to say with any certainty what the implications will be for individual rents.

In December, the rent integrator will be available from the federation's website; a spreadsheet that will allow the calculation of individual target rents.

When setting up a strategy to inform tenants, an association needs to decide the appropriate level and detail of information, and to what types of tenants and in what format this information is to be provided.

Should tenants, for example, be told their target rent or property value? Housing associations will know what a tenant's target rent will be next year but they can only estimate what it will be over time.

Assumptions that affect any estimate of targets, such as the rate of inflation and relative property values and earnings remaining constant, may well change.

A policy of informing tenants of likely trends over time is therefore preferred to one that predicts what their actual rent will be.

For property values, associations need to decide if this is something that their tenants need or wish to know. Whatever the case, property values used must be robust and able to stand up to scrutiny by both tenants and the corporation alike.

Associations need to strike a balance between giving tenants enough information to understand the objectives and the implications of the policy without overwhelming them with details.

The federation is producing a question and answer guide that tries to strike such a balance. The future of housing association rents: A question and answer guide for tenants will be published shortly. It covers the main issues concerning tenants and will be available in several languages.

Any change to an association's rent policy will inevitably raise concerns for some tenants about large increases. Tenants need to be assured, therefore, that their rents will not increase by more than the RPI plus 0.5 per cent plus £2 per week cap in any year.

Tenants with rent guarantees need to be assured that the promises given remain under the new regime.

Associations also need to assess what existing tenant consultation mechanisms are available.

In practice, a range of methods will be needed to get the message to tenants. Asra Greater London and South London Family housing associations, the latter part of Horizon Group, for example, have used tenant forums and newsletters to discuss and inform tenants of the changes.

Southern Housing Group has held regional tenant meetings and is producing a newsletter to further publicise the changes.

Weymouth and Portsmouth Housing Association has altered its tenants' handbook to take account of the policy change, a task that many associations will need to address.

As for any significant policy, the information provided should be fully inclusive and accessible to all tenants. It is essential to match the relevant media and publicity to the types of tenants involved, such as client groups within supported housing, and tenants with first languages other than English.

Sandwell Tenants' and Residents' Federation has produced some excellent guidance on communicating with ethnic minority tenants.

In future, new tenants will need to be made aware of the rent policy, and associations may feel the need to continue to explain the policy each time rent increase notices are issued.

However it develops, it is essential that rent policy is as transparent and comprehensible to tenants as possible, so that associations are able to justify the rent charged, and tenants are able to understand why and how rents have changed.

The future of housing association rents: A question and answer guide for tenants, NHF.
Tel: 0870 010 7676
or email: publications@housing.org.uk

www.housing.org.uk
www.housingcorp.gov.uk
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