Clients must be given notice of Income Related Rent increase - change in circumstances

Following a change in circumstances review, the amount of the Income Related Rent charged by the housing provider cannot increase until the earliest rent effective date following the:

• 61-day period from the date of change in circumstances or
• 14-day notice period plus the service period, when this period cannot be included within the 61 days from the date of change in circumstances

whichever is the later.

Increases to the rate of Income Related Rent are not backdated.

If a rent increase should have occurred before the earliest rent effective date, consideration must be given on whether a debt needs to be established.

The new Income Related Rent must be charged by the housing provider at least 61 days after the date that the change in circumstances occurred.

The 61-day period provides:

• a standard timeframe and certainty to the client on how often the rent can be increased and
• time for the client to adjust their circumstances to pay the increased rent and to establish the new rent payments

The 61-day period is counted from the day after the day that the change in circumstances occurred.

In this example, MSD has been notified at the point the change in circumstances occurs.

The housing provider must give at least a 14-day notice period to the client before the rent is changed.

The housing provider must also allow a 'service period' to allow the client time to get the notice.

In this example, the change in circumstances has been notified late, a debt may be created.

The housing provider must give at least a 14-day notice period to the client before the rent is changed.

The housing provider must also allow a 'service period' to allow the client time to get the notice.