Below Market Rent
Below market rent accommodation. An example of a new low-cost accomodation that our charity Zetetick Housing is currently bringing to the social housing market is: Northcote Road, Croydon. The Regulator of Social Housing stage 1 application to become a Registered Provider requires submission of evidence supporting our provision of low-cost accommodation that is below market rent, and our charity Zetetick Housing will be presenting Northcote Road scheme as an example. To achieve this, Zetetick has commissioned a RICS valuation for rents that will support the assessment of rents set and to act as a benchmark in defining ‘market rent’.
Even though a charity Zetetick Housing sources accommodation from the open Private Rental Market and does not seek or require Government grants to fund their schemes. Therefore, the rents Zetetick set are not subject to the ‘rent standard’, so defining the charity’s compliance with the provision of low-cost accommodation requires evidence of rents being set below market rent. This is where a RICS valuation is key to determining the market rent for any given scheme.
One of the key factors to becoming a Register Provider (RP) of social housing with the Regulator for Social Housing (RSH) is a demonstrable and clear benefit to both the public purse and disadvantaged tenants’, by offering accommodation that is ‘…below market rent’s’ or commonly known as ‘low-cost accommodation’. As a charity our commitment is to not just provide value but high quality, for all our partners.
Unfortunately, there is no precise definition of what exactly ‘below market rent’ means within the Regulations. Where a Regulated Provider has funded projects through Government grants, then the rents are subject to the RSH rent standard, which sets rents at or below 80% of market rents. The formula for setting the market rent is complex and arguable out-of-date with the reality of rental valuations in today’s demanding market. However, referencing a Royal Institution of Chartered Surveyors (RICS) is a major factor and consideration in assessing the market rent for any property.
Zetetick is a Housing Charity
Our intention is to continue to support our tenants, Landlords and housing stock through out this crisis, as a charity Zetetick Housing we provide high quality housing to supported living at below market rent. You could help us now to continue to do this at a difficult timeDonate and Help
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