Autumn Statement - will the local housing allowance be the equivalent of the bedroom tax for housing with care?
Hello everyone -
How are you all responding to the chancellor's announcement in the autumn statement about Local Housing Allowance applying to housing associations and the for extra care schemes.
I am concerned on 2 fronts. Firstly the high service charges at our extra care schemes will likely put us above the LHA level. Secondly the LHA will specify the number of bedrooms people are eligible for and therefore restrict the level of funding for single people and couples who have traditionally occupied 2 bedroom apartments in extra care.
We are on site with a 81 unit scheme. we had planed that 40 of them would be 2 bed apartments for rent. We are now looking at whether we need to change the tenure mix at the scheme in light of the Chancellor's announcement.
I look forward to hearing your thoughts.
Rodger
I think it will depend on how many self-funders you are anticipating attracting as opposed to social renters. Have you thought about that one?
I don't have any figures but as more older people learn about extra care the more people are thinking of it as 'forward planning' and moving in anticipation of care need rather than at crisis point. So renting versus buying is just part of the equation for them.
Consequently, it will also matter where you are located as to whether your scheme will attract them and what the housing market is like in your area.
Are there lots of extra care facilities?
Can people sell their family homes reasonably quickly or is it taking years rather than months?
Perhaps they can rent out their family home to rent from you?
Sorry there are more questions than answers but you may need to think again about who your tenants may be.