5. Affordability and base line rent
The framework sets a ‘base-line’ for rents as rent and affordability are key characteristics of any tenancy.
Our preferred base-line is that rents should be set at the level of social rent but we recognise that registered providers may wish to charge affordable rents, and these should not exceed local housing allowance levels.
Registered providers should have regard to local policies on affordability and any requirements of section 106 agreements.
The base line rent will be used to inform ongoing debate between partners and stakeholders on rent, affordability and viability.
We will encourage registered providers to carry out some form of assessment of affordability at the point of letting, particularly where rents are at or close to local housing allowance levels.