Civitas Social Housing has responded to notices served on two of its tenants by the Regulator of Social Housing.
Westmoreland Supported Housing and Trinity Housing Association have been issued regulatory notices declaring them in breach of the Rent Standard.
Specialist supported housing (which Civitas owns) is exempt from Rent Standard requirements because it has been designed or altered for residents who require specialised services or support in order to enable them to live, or to adjust to living, independently within the community. Payment of the rent is met through housing benefit.
The regulator has said that both Westmoreland (which makes up 6.3% of Civitas’ portfolio) and Trinity (5.5%) were “unable to provide adequate assurance” that the accommodation they provide “meets the government’s definition of specialist supported housing”.
Responding to the notices, Civitas has said: “The statement from the regulator is part of an ongoing programme of engagement with specialist housing associations to improve their standards of reporting and disclosure. Civitas strongly supports the work the regulator is doing and is encouraged particularly by the significant progress which both Westmoreland and Trinity have made so far.
“The rent levels of all properties in the portfolios of Civitas’s housing association counterparties are subject to regular scrutiny and analysis to determine that they are appropriate and set at a level that is reflective of the specialist accommodation being provided, and therefore are exempt from the Rent Standard as being Specialist Supported Housing.
“Civitas anticipates no change to the rental payments from these housing associations, and all rents remain fully up to date in accordance with their terms. On that basis it would not be expected to have any effect on the carrying value of those properties in terms of EPRA NAV.”
CSH : Civitas responds to regulatory notices on two tenants