The Affordable Homes Programme signals a significant change and heralds the introduction of a new more flexible form of social housing, Affordable Rent, which will be the main type of new housing supply. Affordable Rent will allow a more diverse offer for the range of people accessing social housing.
Affordable rented homes will be made available to tenants at up to a maximum of 80% of market rent and allocated in the same way as social housing is at present. Landlords will have the freedom to offer Affordable Rent properties on flexible tenancies tailored to the housing needs of individual households. The government has introduced a series of other measures such as changes to tenure (no longer a requirement to offer lifetime tenancies, flexibility to offer shorter terms with a minimum of two years); greater flexibility for local authorities in their strategic housing role and options to increase mobility for social tenants.
The Affordable Homes Programme framework - PDF (473KB) explains our Affordable Rent model in more detail and the Capital Funding Guide provides guidance for Registered Providers who have received HCA funding for Affordable Rent.
Guidance to help in assessing market rent for the purposes of the Affordable Rent product has been produced by the Royal Institution of Chartered Surveyors. This was produced with assistance from representatives of the housing sector, and in consultation with the Homes and Communities Agency, as both investor and regulator of social housing. The guidance is intended to assist registered providers in complying with standards set by the Regulator of Social Housing when assessing the market rent to be incorporated into the calculation of an Affordable Rent.
This information is an extract from the Red Book which is reproduced with permission of the RICS, which owns the copyright.