It is understood that the corporation will urge housing associations to comply with the government’s decision to cap the highest target rents resulting from rent restructuring.
But, in a move carefully negotiated by the housing lobby, it has conceded this will take place, “in so far as [RSLs] are able to, taking account of their financial commitments”.
Housing minister Lord Falconer announced caps on social rents affected by rent restructuring last month (Housing Today, 29 November).
The caps, staircased by room size, peak at £100 for a four-bedroom house in 2002/03.
Giving associations discretion to take into account “financial commitments” will allow RSLs greater independence over their businesses, the quango hopes.
The guidance is intended to particularly help supported housing providers, whose rents are often higher due to steep running costs.
But the concerns surrounding properties with more than four bedrooms are to be dealt with separately when a review of restructuring’s impact on black and minority ethnic landlords is completed.
National Housing Federation policy director Liz Potter said: “RSLs need to recognise the principles of independence, and their hierarchy of obligations still stands.
“If they cannot meet the details of the ministerial policy, they need to justify that in terms of their business plans, and in that case it will be accepted by the Housing Corporation,” she said.
Mark Lupton, policy analyst at the Chartered Institute of Housing said: “At a time when the rules seem to be changing on a regular basis, the corporation seems to be taking a sensible approach which will help associations through the difficulties.”
A source close to the negotiations said the decision showed rent restructuring was not about “individual rent policing.”
“This is about what makes sense for tenants and other stakeholders,” the source added.
Source
Housing Today
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