Equivalent Fair Rents Customer Guidance for Almshouses only

Background

The Valuation Office Agency, which incorporates Rent Officers, has agreed with the Almshouse Association, that Rent Officers will provide a rental valuation service to local almshouse charities who want help and advice concerning the level of rent or licence fee which they charge their residents. Almshouses are generally run by local charitable organisations with help and advice from their national body, the Almshouse Association.

Basis of Determination

The basis of the rental determination carried out by the Rent Officer is an ‘Equivalent Fair Rent’, which means that the Rent Officer assumes that the resident has the protection of the Rent Act 1977.

The determination is made on the assumption that no furniture or services are included.

The ‘rent cap’ introduced by the Rent Act (Maximum Fair Rent) Order is not applied, so the assessment is based on a market rent adjusted for the degree to which the dwelling is modernised, and for the degree to which supply and demand inflates market rents. The level of rent is therefore often less than a market rent.

The Rent Officer will determine an Equivalent Fair Rent after looking at comparable rental evidence from our database.

If an inspection of the property is needed, we will arrange that using the details from the application form.

Effect of determination

The effect of the determination is that it may be used as the charity sees fit.

It is informal advice and so it has no legal standing, but may be used as the basis for the charity to set its charging structure.

As the VOA must make a charge for every determination made, charities may elect to apply for a representative determination only.

For example, if there is a terrace of similar almshouses with similar provision of accommodation, you may decide to apply for a rental determination for only one of them, and then use that determination as the basis for what is charged to the residents of all dwellings in the terrace.

Cost of service

This is not a free service, but is offered at a cost-based fee, currently £18 per determination.

Completing the application form

Application forms are to be signed, dated and submitted by post.

A pdf version of the application form is available on our website. Alternatively, we can send you one if you contact us.

You will need to provide us with various pieces of information which are detailed on the form.

It should be noted that only one dwelling may be applied for on any one application form.

If more than one address appears on an application form, you will receive a rental determination for the first address on the form only.

Payment and invoicing

Please note that you do not have to pay the fee in advance of receiving the determination.

You can pay by cheque or by electronic transfer, but whichever method you choose, and whether you pay in advance or not, we will send you an invoice.