HCA Restricts Affordable Rent Re-Lets Following Benefit Bill Concerns

The government has banned some social landlords from converting re-lets into its new affordable rent product because of the impact it could have on the housing benefit bill. The Homes and Communities Agency has told landlords which had their bids for development funding rejected they would be unable to convert empty social homes into ‘affordable rent’ properties because it would inflate the housing benefit budget. An HCA spokesperson said: ‘The conversions under the programme have been fully costed in terms of impact on the benefit bill. The government does not want further uncontrolled conversions.’ However, the agency said failed bidders could charge affordable rents, at up to 80 per cent of market rates, on new homes built without grant. Read more on Inside Housing.