Social Housing Rent Standard (Wales) 2016

The Welsh Ministers make the followingSocial Housing Rent Standard as respects all Local Housing Authorities and Registered Social Landlords in Wales. The Standard is made in exercise of the powers conferred by sections 33A to 33C of the Housing Act 1996 and sections 111 to 113 of the Housing (Wales) Act 2014.

  1. Title and commencement

The title of this Standard is the Social Housing Rent Standard (Wales) 2016 and has effect from xxxx 2016.

  1. Application

The Social Housing Rent Standard:

a)shall apply to all Social Landlords in Wales with more than 100 self contained units ineither general needs or sheltered housing. This is, regardless of whether the housing was funded directly or indirectly by grant or subsidies from the Welsh Government or UK Government, from a landlord’s own resources or otherwise;

b)shall not apply to the property types owned or managed by Social Landlords detailed in Annex 1.

  1. Interpretation

In this Standard “Social Landlord”, means a Local Housing Authority which has housing stock within their Housing Revenue Account and Registered Social Landlords, registered withthe Welsh Ministers under Part 1 of the Housing Act 1996, referred to in this Standard as 'Housing Associations'.

  1. Revision

The Welsh Ministers may at any time, subject to consultation, revise or withdraw the provisions set out in this Standard.

  1. Required Outcome – compliance with Standard and Guidance

Social Landlords shall set and charge rents in accordance with the “Social Housing Rent Standard” and the “Social Housing Rent Standard Guidance” which relates to and amplifies the Standard[1].

  1. Specific Expectations

Each Social Landlord shall ensure they meet the following key requirements:

a)The average weekly rent for all their applicable properties shall fall within their Target Rent Band set and published by the Welsh Ministers each year.

b)They take appropriate steps to bring their average weekly rent within their Target Rent Band where the requirement in 6 a) is not met. Where:

  • the average weekly rent is below the Target Rent Band – Social Landlords are expected to increase their weekly rents by the percentage amount agreed by the Minister plus a maximum of £2 per week.
  • the average weekly rent is above the Target Rent Band - Social Landlords are expected to increase their weekly rents at a lower rate than the percentage amount agreed by the Minister.

c)The maximum amount any social rent for an individual tenant can increase, for the same property, shall be no greater than the percentage amount agreed by the Minister each year plus £2.00 per week.

d)Where a Social Landlord currently pools rents and service charges, they must complete the process of disaggregating service charges from rent by 1st April 2016.

e)Submit their”Annual Self-Certification Monitoring Return” to ensure compliance with the Standard.

f)The statistical data submitted forannual stock, rent and Standard Assessment Procedure (SAP) is complete, accurate and authorised by the Chief Finance Officer or appropriate person under delegated authority.

g)Tenants are appropriately consulted on any changes to the Social Landlord’s Local Rent Setting Policy in a reasonable and fair manner.

h)Housing Associations are required to comply with the Performance Standards as set out in the Regulatory Framework, as amended.

  1. Exceptional Circumstances (Waiver/Transitional arrangements)

a)Where a Social Landlord is not able to meet any of the key requirements or where the application of the Social Housing Rent Standard would cause concerns for Social Landlords, their tenants or lenders, the Social Landlord should submit a formal case to the Welsh Government.

b)The Welsh Ministers will consider each case on merit and may require Social Landlords to provide additional information.

c)The Welsh Ministers may agree to waive specific requirements of the Standard for a period of time, subject to agreed review timescales.

Annex 1

Properties excluded from the Social Housing Rent Standard

The Social Housing Rent Standard shall not apply to the following property types owned or managed by Social Landlords:

Social Housing

  • extra-care housing;
  • other supported housing;
  • any housing units which are not self-contained;
  • Fair Rent properties (subject to outcome of consultation).

Other

  • housing let at intermediate rent levels;
  • housing let at market rent levels;
  • Shared ownership, homebuy, flexible tenure for the elderly;
  • non residential properties;
  • leased dwellings;
  • dwellings that are managed as a social letting agency;
  • properties where the Social Landlord has sold the leasehold (through right to buy, right to acquire or otherwise) but retains the freehold;
  • residential care homes;
  • nursing care homes;
  • residential investment properties;
  • student accommodation;
  • vacant dwellings awaiting demolition or disposal where formal agreement by the Board/Council has been obtained.

[1]The Social Housing Rent Standard and the Social Housing Rent Standard Guidance are published on the Welsh Government website: