Increasing the rate of Income Related Rent to the market rent rate

In certain situations MSD can make a decision that a client's rate of Income Related Rent should be set at the market rent rate. This may happen:

• when a client 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 there is a mismatch of additional occupant contributions and accommodation costs, and it has not been resolved within 10 working days after the date of the mismatch being notified to both clients

Following this decision MSD will need to notify the housing provider that a rate of Income Related Rent cannot be calculated for the client and must:

• provide the client with a statement that:
  • they have provided insufficient information and the date MSD determined this (where applicable)
  • MSD determined that the Income Related Rent should increase to the market rent rate for the property (where applicable)
  • the client has the right to request a review of the decision to recalculate the rate of Income Related Rent
  • while MSD has determined Income Related Rent should be set at the market rent rate, it is the housing provider who actually decides whether there will be a change in the rent charged and the rent effective date
  • the change to the rate of Income Related Rent is due to insufficient information being provided by the client
  • the Income Related Rent is equal to market rent rate for the property and
  • includes the date MSD processed the change

The market rent rate is the maximum rent a social housing client can be charged.

The housing provider cannot charge a rent greater than the market rent rate for the property.