Rent Pressure Zone: application requirements

Criterion

Elements to include

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Criterion 1 - The proposed area must be defined clearly. A member of the public must be able to determine if their property is in a designated RPZ

• The proposed RPZ boundary, ideally including a map; and
• Clear description of the geographies (this needs to include a standard geography such as postcode or data zone or a list of Unique Property Reference Numbers).

Criterion 2 - How long does the local authority want the designation to last

• The proposed start date (allowing sufficient time for publicising a designated zone);
• The proposed number of years for the designation to last (cannot exceed five years); and
• The local authority's reasons for these proposals.

Criterion 3 - Evidence that rents payable within the proposed rent pressure zone are rising by too much

• A profile of PRS property characteristics ( e.g. house type, size, age, location) and details of any changes to this profile impacting on rent changes;

• Time series administrative or survey data and/or other research evidence showing the size of the rent increase, for existing tenants in the same properties, in a range of property types, sizes and ages;
• Information on the sample used to demonstrate the rent increase ( e.g. sample frame, methodology, size, non-response rates, sample error or biases and coverage issues, including efforts made to increase coverage);
• Details of the methodology/ies used to analyse this evidence; and
• A statement based on this evidence (and any other evidence gathered) to explain why the local authority believes that rents are rising by too much in the proposed RPZ.

Rent data must be collected from existing tenants who have had a rent increase (in the same properties) and be representative of the PRS profile of the area. Other rent data ( i.e. new lets) can be used as context only and cannot be used as supporting evidence as they may not represent the rents of existing tenants.

Criterion 4 - Evidence that the rent rises within the proposed zone are causing undue hardship to tenants

Evidence that tenants are experiencing hardship which is due to rent increases among existing tenants.

Although specific methods are not prescribed, details must be provided of the methods and sources for collecting and analysing this evidence.

A statement based on this evidence (and any other evidence gathered) to explain why the local authority believes that rent rises in the proposed zone are causing undue hardship to tenants.

Evidence in relation to new lets can be used to provide context, but cannot be used as supporting evidence as it may not represent the experiences of existing tenants.

Criterion 5 - Evidence that the local authority within whose area the proposed zone lies is coming under increasing pressure to provide housing or subsides the cost of housing as a consequence of the rent rises within the proposed zone

Evidence that the rent rises outlined in Criterion 3 have either:

• Increased the pressure the local authority faces to provide housing; or
• Increased the pressure the local authority faces to subsidise the cost of housing.

Although specific methods are not prescribed, details must be provided of the methods and sources for collecting and analysing this evidence.

A statement based on this evidence (and any other evidence gathered) to explain why the authority believes that they are coming under increasing pressure to provide or subsidise housing due to rent rises in the proposed zone.

Evidence must refer to rent rises among existing tenants. Other rent data ( i.e. new lets) can be used to provide context, but cannot be used as supporting evidence as they may not represent the rents of existing tenants.

Criterion 6 - Information about how successful designations will be publicised

Details should be provided of the steps that will be taken, and when, should the application be successful, to advise relevant persons that the area has been designated as an RPZ.

Criterion 7 - The local authority's recommended value for X in the Formula

A recommended percentage point (X) to be added to CPI + one percentage point when calculating a new maximum rent increase in the RPZ, including explanation of the recommendation and demonstration of the impact this would have on tenants, landlords and other relevant parties.

To demonstrate the impact of the proposed level of X, local authorities may wish to compare the future rent levels, assuming that rents continue to rise in the manner which they have previously risen, with the maximum rents which could be charged under the proposed value of X.

Criterion 8 - Evidence of housing supply plans

Evidence is provided in the application that the Local Authority has put in place housing supply plans, policies or strategies.

Criterion 9 - Publicising the application

Evidence that the application, including all supporting evidence, has been published on the local authority's website.