“Landlords could take action to exempt some of their tenants from the government’s plan to cap housing benefit for social tenants in line with sector rates”, according to sector experts, reports Inside Housing.
This is because supported housing units leased to a non-registered subsidiary would be classed as private instead of social housing.
The exemption would only meet the needs of supported housing provided by private landlords also known as ‘exempt accommodation’.
Exempt accommodation must be non-profit and
Support must also be provided
The government’s new LHA rates would not apply if:
A private provider not registered with the Homes and Communities Agency meets the exempt accommodation criteria
Policy and practice officer at the Chartered Institute of Housing, Sam Lister, said: “Transfering properties would be a ‘risky thing to rely on’ because of the uncertainty over future regulations”.
Partner at Campbell Tickell, James Tickell also said:
“Landlords may face a number of risks in leasing properties to a subsidiary, such as having to bail out a loss-making subsidiary if rents did not rise as expected.”
A DWP spokesman said “the government is carrying out a review of the funding of supported housing” and “details would be announced in due course”.
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