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Income Related Rent : Contents

Difference in notice periods given by housing providers

The amount of the rent charged by the housing provider cannot increase until the earliest rent effective date following the:

Housing providers give notice to clients to ensure that they have time to adjust their circumstances to pay a higher rate of rent.

Note the housing provider must decrease the rent from the earliest rent effective date following the notification (ie no 14-day notice period or 60-day notice period applies for rent decreases).

Guideline for the difference between notice periods

14-day notice period and the 61-day period

60-day notice period and the 12-month period

Social housing providers must give tenants at least 14 days' notice of any increase in their rate of Income Related Rent that is due to a change in the household circumstances.

The 14-day notice must be given before the rent effective date. It could be within the 61-day period, or in addition to it, depending on when the change of circumstance was notified or discovered.

The 14-day notice period starts from the date the notice is deemed to have been given to the tenant. In other words, it is in addition to the service period that applies (depending on the method of delivery).

The 61-day period ensures that, when a tenant has a change of circumstance, any increase in their rate of Income Related Rent cannot take effect until at least 61-days after the date that the change in circumstances occurred (regardless of when the change of circumstance was notified or discovered). The 61-day period is counted from the day after the day that the change of circumstances occurred.

While housing providers are responsible for allowing for the 61-day period, MSD must take it into account when calculating debt in situations of late notification or discovery of a tenant's change in circumstances, and it is also relevant to the calculation of Income Related Rent subsidy payable to housing providers.

The 61-day period and the 14-day notice period are counted in calendar days.

The 60-day notice period ensures that a client receives at least 60 days' notice of an increase in their rent. The 60-day notice period will apply to all increases of rent where the 61-day period is not applicable.

This will include situations where the client doesn't provide sufficient information to MSD to calculate or review the rate of Income Related Rent and generally their rent is to be increased to market rent.

In situations where the 60-day notice period applies, the 12-month period also applies. The 12-month period ensures a client's rent cannot be increased:

  • within 12 months of the day after the rent last increased or
  • within 12 months after the day the tenancy started

The 60-day notice period starts from the date the notice is deemed to have been given to the client. In other words, it is in addition to the service period that applies (depending on the method of delivery).

It is counted in calendar days.

When do housing providers use the 14-day notice period?

The 14-day notice period is used when the rate of Income Related Rent following a change in circumstance, which includes changes to the applicable person's income, and changes to their household, type.

When do housing providers use the 60-day notice period?

The 60-day notice period is used:

  • following the annual review of the rate of Income Related Rent where the rate has been increased due to the annual general adjustment to the rates of MSD financial assistance
  • when a applicable person has not completed an annual review form or provided sufficient information to process an annual review
  • when a client has had a change in circumstances, but has not provided sufficient information to process the review within 10 working days of the information being requested
  • when the tenant is paying rent at the market rent rate and the housing provider increases the rate of market rent

Legislation

The 61-day period ensures, when a tenant has a change of circumstance, any increase in their Income Related Rent cannot take effect until at least 61 days after the date that the change in circumstances occurred (regardless of when the change of circumstance was notified or discovered). The 61-day period is counted from the day after the day that the change of circumstances occurred, and the 14-day notice period is ...

The 60-day notice period ensures that a client gets at least 60 days' notice of an increase in their rent. The 60-day notice period will apply to all increases of rent where the 61-day period is not applicable.

This happens:

Housing providers must give tenants at least 14 calendar days' notice of any increase in their rate of Income Related Rent due to a change in their circumstances. This is to ensure that the tenant has time to adjust their circumstances to pay the higher rate of rent.

The 14-day notice must be given before the effective date. It could be within the 61-day period, or in addition to it, depending ...

An applicable person is:

and

The rent effective date is the one-off date on which an increased rate of Income Related Rent is charged.

The rent effective date is aligned with the next charge date.