Introduction

Social housing tenants must tell us straight away of any change in their circumstances or their family's situation that may affect their rate of Income Related Rent.

MSD calculates a rate of Income Related Rent and tells the social housing provider and the client. The social housing provider sets the rate of rent to pay based on the rate they are given by MSD.

If MSD are told about a change in circumstances late the rent rate the client is paying could be too low and an Income Related Rent debt may be created.

Note Income Related Rent debt is not rent debt (i.e. it is not debt owed to a landlord). MSD does not establish or recover rent arrears or other tenancy related debt.

Income Related Rent debt is created when a clients Income Related Rents rate of payment for social housing was calculated at less than they should have paid.

The debt for the client is the difference between the current correct rate of Income Related Rent and the rate of Income Related Rent calculated earlier for that period. The client will generally need to repay any debt established.

MSD is responsible for Income Related Rent debts established on or after 14 April 2014.

Debt established after 14 April 2014 may include periods from before 14 April 2014.