

Expert Brief

Compliance and Regulatory Framework

●Support Solutions UK produce supported housing market analysis on behalf of an RP for rent comparables to establish whether proposed rent and service charges for the development are within the spectrum of rents already established oIf yes, then the precedent has already been established or market doesn’t exist in the area as yet oIf no, we determine why the rent is higher than those currently established bearing in mind that rent must be considered reasonable ●Support Solutions UK will construct a technical rent approval submission pack which includes: oTransparent lease rent calculation oTransparent gross rent and service charge breakdown inclusive of RP costs & allowances oLocal Authority/Health commissioner support, confirmation that development is required and that it fits within the local strategic priorities oSummary of regulatory position and case law precedent establishing that the proposed development is compliant with the relevant provisions and that the proposed rent is reasonable ●Support Solutions UK enters into communication and negotiation with Local HB Authority in respect of each development inclusive of multi stakeholder meetings if required ●Support Solutions UK’s objective is to secure approval in principal from Local HB Authority ●RP signs agreement for lease on receipt of approval ●Development proceeds It is of note that we have no examples of Local HB Authority not awarding HB at required levels at point of tenancy sign up following original approval in principle. Also, the lease rent is approved based on the costs incurred in developing the building and will be approved for all assured tenants that enter that building. Once approved the level of Benefit is extremely unlikely to reduce for the duration of the lease unless there is a significant change in the regulations. This is unlikely given the significant costs that would be associated with re-provision for this particular tenant group and due to the fact that the current regulations have been in force for the last 20 years. The RP will levy management, maintenance and service charges in addition to the lease rent when an indicative application for Housing Benefit is submitted. This is industry standard and the charges are reflective of actual costs incurred by the RP in respect of delivering a housing management service, the day to day maintenance and delivery of housing services. Charges are also levied for planned and cyclical maintenance and a sinking fund that is accrued to cover major repairs during the life of the lease. These charges are reviewed annually. In general, the RP also apply a 15-25% levy on the net rent and service charges to cover voids, to contribute to senior management and overheads and to generate a surplus.

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