Peabody Regency Portfolio Policy

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1 Peabody Regency Portfolio Policy 1. Aims and Objectives 1.1 The Peabody Regency portfolio offers an affordable housing option for Key Workers that do not qualify for general needs or affordable rent and who are not in a position to enter into home ownership. 2. Scope 2.1 This policy sets out how Peabody manages the Regency portfolio. The policy covers eligibility criteria, rent setting and collection, lettings, and tenancy management. This policy is written in line with the nominations agreement agreed between Peabody and the Crown Estate. 2.2 This policy applies to all Peabody Regency properties let to eligible Key Worker tenants under The Crown Estate nominations agreement. 2.3 The policy does not affect the rights of any existing tenants on former regulated, assured or assured shorthold tenancies. 2.4 Regency properties let to non-eligible Key Workers and Regency Market Rent properties are covered in Peabody s Intermediate Rent and Market Rent policies. 3. Key terms and definitions 3.1 The Regency portfolio properties are the former Crown Estate properties at Millbank, Lee Green, Victoria Park and Cumberland Market estates that were transferred to Peabody in Eligible Key Worker means an applicant who meets the eligibility criteria for the CBL scheme and has been nominated by an approved nominating body. 3.3 Non-eligible Key Worker means an applicant who meets the eligibility criteria for the CBL scheme and has not been nominated by an approved nominating body but is registered with the Mayors First Steps scheme. 3.4 Nominations Agreement means the legal contract between the Crown Estate and Peabody that governs the way the Regency Portfolio is managed. 3.5 Exceptional circumstances are those in which tenants may require urgent re-housing. Examples include, but are not limited to, a medical condition or disability, caring

2 4. Policy commitments, domestic abuse and domestic violence or harassment or management reasons (e.g. decanting residents). Choice Based Lettings (CBL) 4.1 The CBL scheme is open to former Crown Estate Key Worker tenants and Key Workers who have been nominated for housing by an approved nominating body. 4.2 To be eligible to apply for properties through CBL applicants must meet the following criteria: Have a total household income of less than 71,000 per annum for 1 or 2 bedroom properties and less than 85,000 per annum in the case of 3 or more bedroom properties Cannot afford to buy or rent a suitable home on the open market. Have an annual household pre-tax income of at least 30 times the monthly rental value of any property they apply for. e.g. For a property at 970 per calendar month the household pre-tax income must be 29,100 per annum. Be able to pay rent without recourse to public funds e.g. Housing benefit. Be able to provide documentary proof of their current employer Be either a British or EU/EEA citizen or have indefinite leave to remain in the United Kingdom Not own property Be employed on a permanent contract. Or Applicants on a temporary contract may be considered if: - They are due to remain in employment for a further 6 months from the date that the tenancy is due to commence; - The initial term of their employment contract was at least 12 months; and - There is reasonable prospect that the term of the employment contract will be extended as confirmed by their employer Eligible keyworkers are permitted to share their property with non-eligible applicants provided they are declared on the eligible key workers CBL application form and the household meets the eligibility criteria above. At least one eligible key worker must remain as a tenant throughout the tenancy.

3 Transfers 4.3 Applicants will only be able to transfer to a property within the Regency portfolio. 4.4 Existing tenants may be eligible to transfer to another property if they require a smaller home or their current property no longer meets their housing needs. 4.5 Tenants who wish to transfer to another property must meet the CBL eligibility criteria outlined in section 2 and must have been a tenant for a minimum of 6 months. We may consider transfer applications from tenants that do not meet this criteria in exceptional circumstances. 4.6 Applicants must submit a new CBL application form stating the reasons or circumstances for the application. 4.7 Applicants will not generally be able to move from like to like properties - i.e. from a 1 bedroom property to another 1 bedroom property except in exceptional circumstances. 4.8 Households cannot be split across multiple properties when transferring. Tenancies 4.9 New tenants will be granted periodic assured shorthold tenancies 4.10 Tenants whose tenancy commenced prior to 01/03/2011, have the benefit of the addendum to their tenancy agreement. If the tenant is to transfer, they will continue to have such benefit after they have transferred provided they are entitled to under the provisions of the addendum.peabody reserves the right to terminate tenancies where there is a breach of tenancy, tenants no longer meet the eligibility criteria, or we require vacant possession of the property i.e. for redevelopment If possession is required where there has been no breach of tenancy, Peabody will provide advice on alternative housing options Tenants are not eligible for mutual exchange Tenants will only have assignment or succession rights if they have a statutory or contractual right. Rents Regency assured (former regulated) tenancies 4.14 We will set rents to the lower of the equivalent fair rent (60% of market rent) or the maximum fair rent.

4 4.15 We will increase rents once a year using the formula stated in individual tenancy agreements, and will not increase rents above the maximum fair rent increases will take effect at least 52 weeks after the previous increase We will cap rent increases at the maximum percentage increase figure set by Peabody each year, and will not increase rents by more than 9%. Regency assured/assured shorthold tenancies 4.17 Where tenants have successfully applied for a transfer, we will set rents at no more than 60% of the market rent We will cap rent increases at the maximum percentage increase figure set by Peabody each year, and will not increase rents by more than 9% increases will take effect at least 52 weeks after the previous increase. Regency assured shorthold tenancies (since March 2011) 4.19 We will set rents between 65% and 80% of the market rent We will cap rent increases at the maximum percentage increase figure set by Peabody each year, and will not increase rent by more than 9% increases will take effect at least 52 weeks after the previous increase Rent collection will be managed in line with Peabody s Rent Collection policy and procedures. Properties 4.22 Properties will be let unfurnished and will have the following goods, fixtures and fittings as a minimum: Fitted kitchen White goods (electric cooker, washing machine, fridge freezer or fridge) Fixtures and fittings (fitted carpets or laminate flooring, vinyl flooring to kitchens and bathrooms, window blinds, shower curtains or screen, phone point, TV aerial point, smoke detector/s) Peabody will make a full listing of the condition of the property at the beginning and end of the tenancy. References and holding fees 4.24 Peabody will use an independent company to obtain landlord references and undertake an income assessment and credit check. The costs of this will be paid for by Peabody Peabody will require an initial 200 holding fee for all properties up to the value of 1000 per month to reserve a property and withdraw it from the market (subject to

5 contract). For properties over the value of 1000 per month, the initial holding deposit will be 300. This fee will be deducted from the overall associated costs (first month s rent in advance, deposit & check out fee) due upon signing of the tenancy agreement or forfeited by the applicant where they withdraw from the process for any reason or do not pass the credit or referencing checks Successful applicants will be required to pay a deposit equivalent to one month s rent, which will be processed in accordance with the requirements of the statutory tenant deposit protection scheme. At the end of the tenancy, the deposit will be processed as stated in the tenancy agreement. Any arrears, damages or repairs for which the tenant is liable will be deducted from the deposit. 5. Monitoring and continuous improvement This Policy will be reviewed every three years, unless legislation, business or sector developments require otherwise, ensuring that it continues to meet its objectives and take account of good practice developments. Version number 1 Approved by Director Resident Services Approval date 25/05/16 Effective from May2016 Policy owner Director Resident Services Policy author Adam Reeve, Marketing Manager Date of next review May2019 Staff consultation Housing Policy Group

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