Local Authorities / Marketing

Your Questions Answered

Summary

This series of questions and answers about a Private Sector Leasing Scheme is intended for Local Authorities who intend to work in Partnership with a Registered Social Landlord and want more information about the Scheme. Alternatively it could be useful to put onto a website so that landlords can learn about leasing schemes.

Further Information

What is a Private Sector Leasing Scheme?

The Scheme is essentially a three-way partnership between the private sector, a housing association and the local authority. The owners of the properties provide the homes, the housing association provides the housing management and day-to-day repairs and maintenance and the local authority provides the tenants.

What is the benefit to the local authority?

The local authority will be involved in making the decision as to whether a property is accepted onto the Scheme so that they can be sure that this increase in their housing stock meets their particular housing needs. The local authority will have 100% nomination rights to the property during the duration of the lease. The Scheme has bee used in the past to house homeless families but could also be used to house those on the housing register.

How will the partnership work between a local authority and a housing association?

The Partnership will be based on a local authority and a housing association signing a joint agreement to share the risks of setting up and managing a scheme. There may be a management cost involved and costs for underwriting the debts that a housing association may encounter. This will be decided between the parties to the arrangement. The framework Agreement document is flexible enough so that it can be used for a variety of different arrangements.
 
What are the costs to the local authority?

The local authority will need to make a commitment to contribute towards the rental charge if the property is void for a long period of time due to the inability of the local authority to provide suitable nominees. The local authority will be required to pay the entire rent for every week that the property is empty after the tenth working day of the new lease period and between lettings.

The local authority will also be required to underwrite 50% of former tenant rent arrears where all reasonable action has been taken by the housing association to recover the debt. 

 Will the Properties be provided Furnished?

Properties will be unfurnished. Any chattels including carpets, floor coverings, curtains, refrigerators, cookers, washing machines, boilers and kitchen units on the Premises at the commencement of the term remain the Landlord’s responsibility through the term of the lease.

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Your Questions Answered - Local Authorities
Your Questions Answered - Landlords

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