Merger Proviso For Rent Cut Exemptions

The government will only consider a rent cut exemption for struggling landlords if they have first looked at merging with another provider, the social housing regulator has warned. The Homes and Communities Agency, in its Sector Risk Profile document, said it will develop guidance with the CLG on the criteria for exemptions from the four-year, 1% annual social housing rent cut.  The HCA said: “Waivers will only be considered for registered providers who face viability or solvency issues and have considered all mitigating actions, including taking all possible costs out of their business and looking at the possibility of a merger partner.” The HCA initially estimated a third of the largest 250 landlords may run into difficulties from the rent cut but later revised this down to a much smaller group of associations. Download the Profile from the HCA website.