If you are considering exchanging with another tenant, it is important that you find out about the type of tenancy and rent level they have.
Exchanges on new tenancies
The Localism Act means that different types of tenancies can now be given for council or housing association properties. If your tenancy was issued on or after 1 April 2012, or you are considering exchanging with someone whose tenancy was issued on or after 1 April 2012, please speak to your landlord. This is because tenancies offered on or after this date are different from tenancies issued before and it is important that you understand the possible implications of making a mutual exchange.
It is important when you are making decisions about exchanging a property that you consider:
- if it is an Affordable Rent home (see below)
- whether you can afford the rent levels
- what the length of the tenancy will be
If you are unsure, seek independent advice before you move.
Due to changes made by Government, housing associations are now allowed to offer some tenancies at higher rents to new tenants. These rents could be up to 80 per cent of a market rent. Market rent means the average rent in the area that someone would pay if they were renting the property from a private landlord.
This is called "Affordable Rent". Housing associations are able to charge the Affordable Rent on new build homes and also allowed to let some of their existing properties to new tenants on Affordable Rents. Many housing associations will try to keep rents on larger homes (three bedrooms or more) closer to social rents.