In June, we asked our tenants to have their say on changes to our Rent Setting and Service Charge Policy.
These changes include introducing ‘rent flexibility’ for some social rent homes which reflects a percentage uplift in line with Government guidance, after taking into account local circumstances and affordability.
- A 5% rent flexibility when re-letting existing general needs social rent homes. This would also apply to tenants wishing to transfer.
- A 5% rent flexibility when letting future new build general needs homes.
- A 10% rent flexibility when letting future new build supported housing schemes. (A higher flexibility applies to these homes due to the extra support they provide)
Tenants affected by these changes are:
- Tenants of future new build general needs homes and future supported housing schemes (homes for people without a specific supported housing need).
- Existing tenants looking to transfer to another one of our general needs homes.
The planned changes will not apply to any other Southway tenants.
Social Rent with flexibility is still significantly lower than the Local Housing Allowance - the maximum benefit eligible rent which can be charged for a similar property in the private rental sector. The following examples (based on 50 rent weeks, excluding service charges) illustrate the impact of the change.
| Example Property Type | Social Rent | Flexibility | Social Rent with Flexibility | Local Housing Allowance |
| Three bedroom general needs home |
£121.89 | +5% | £127.98 | £228.12 |
| Two bedroom general needs home |
£108.44 | +5% | £113.86 | £210.11 |
| One bedroom supported housing |
£95.79 | +10% | £105.37 | £186.10 |
What next?
Existing tenants won’t be affected by rent flexibility changes unless they transfer to another Southway home or supported housing scheme.
120 tenants gave us their views on the policy changes. We’ve considered this feedback and concluded flexibility will not apply in cases where tenants want to move to a smaller property, or need to move for exceptional circumstances.
Southway’s Board has approved the new policy, they were satisfied that people are not disadvantaged by these changes, and that implementing rent flexibility will enable us to deliver more quality affordable homes for future tenants to help address local housing shortages. Flexibility will come into effect from
If you have any further questions, please contact us on 0161 448 4200.
