We are changing the income criteria for mid market rent (MMR) homes.
Mid market rent properties are designed to provide affordable homes for those on low to moderate incomes, and who may not be able to access home ownership or private rental properties. Income does not have to come exclusively through employment.
Currently we have two gross annual income brackets for our MMR properties:
- £17,000 to £36,000 for 1 and 2-bedroom homes
- £17,000 to £40,000 for 3 and 4-bedroom homes
From 1 June 2024 the income criteria for 3 and 4-bedroom homes is changing to £21,000 to £44,000.
There is no change to the income criteria for 1 and 2-bedroom homes.
Why we made the change
A recent peer comparison, where we compare ourselves to other similar housing providers, showed that our current income criteria needed to be in line with what other organisations were doing to help our customers to have sustainable tenancies.
The cost of living has risen significantly in recent years and this has not been reflected in our income criteria. We looked at the numbers and found the lower income threshold of £17,000 proves to be unaffordable for larger properties, with basic monthly household costs being higher than the income or leaving only a very small disposable income.
MMR is aimed at low to moderate income households and we do not think that the current upper-income bracket for 3 and 4-bedroom properties reflects this, in addition we have seen an increased number of applicants’ income slightly exceeding the upper bracket.
As a responsible landlord, we want to make sure our mid market rent customers can sustain their tenancy and we have to make sure that the property is affordable.
What do you need to do?
If you are an existing mid market rent customer, you do not need to do anything.
If you are looking to apply for a mid market rent tenancy or move to a larger home, the new income criteria is something that you must consider and we are happy to chat to you if you have any questions.
We know the cost of living is a challenge for everyone so if you need help, support or advice, our tenancy support team offer a range of free services to help you make the most of your money, including energy advice, money and debt advice, and benefits advice. Call 01592 630 922 or email tssteam@kha.scot
