Rent reduction - separating service costs
This concept note updates a previous paper, which examined the potential effects of de-pooling service costs from the rent for social landlords in England, following the introduction of the Welfare Reform and Work Act 2016 and The Social Housing Rents (Exceptions and Miscellaneous Provisions) Regulations 2016.
Further work in this area has caused a re-think of a key interpretation that applies to the treatment of service costs under the requirement for rent reductions. This concept note applies that revised interpretation. In it, we look at the potential effects of identifying a separate service charge element either within an existing, combined rent or as a separate de-pooled charge.
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