1.1  Purpose

1.1.1  This chapter sets out the procedures which must be followed and the conditions under which RSLs must progress Intermediate Market Rent schemes. 

1.1.2  This is the basis upon which the Homes and Communities Agency will assess applications for Social Housing Grant.

1.2  Context

1.2.1  Intermediate Market Rent is a product available for RSLs to offer in those cases where RSLs can demonstrate there is a need for rented housing for tenants who are able to afford more than social rents but who cannot afford to access Low Cost Home Ownership options (such as NewBuild HomeBuy or Open Market HomeBuy) in the short term.

1.2.2  This product is similar in nature to the Intermediate Rent schemes currently available to key workers, but has none of the key worker specific criteria.

The following scheme types are included under the Intermediate Rent heading:
• New Build; including Acquisition & Works, Off the Shelf and Works Only schemes;
• Rehabilitation including Acquisition & Works, Existing Satisfactory, Purchase and Repair and Works Only schemes;
• Re-improvement of RSL owned stock but not Major Repairs. Note that Major Repairs are covered by the Repair chapter of this Guide.

1.2.3  As Intermediate Market Rent schemes are classified as LCHO products the minimum standards are those applicable to Sale schemes as set out in the Agency's 'Design & Quality Standards' (DQS).

1.3 Right to Acquire

1.3.1  Because Intermediate Rent tenancies will be let on an Assured Shorthold basis - see below - tenants will not have the Right to Acquire in respect of properties rented on an Intermediate Market Rent basis. 

1.3.2 However, an Assured Shorthold Tenancy does count towards the qualifying residency period - see RTA 2.2 etc.