Places for People and Derwent Living Voluntary Right to Buy (VRtB) Portability Policy
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1 Places for People and Derwent Living Voluntary Right to Buy (VRtB) Portability Policy VRtB Portability Policy Page 1 of 6
2 1.0 Scope of Policy This Policy sets out the approach to be taken by Places for People and Derwent Living (the Group) in relation to offering tenants (applicants) the opportunity to port their Voluntary Right to Buy (VRtB) discount to another suitable property which is eligible under the Midlands Pilot Scheme (the Scheme) where the Group has exercised its discretion not to sell the property they currently live in. 2.0 Introduction The Policy aims to provide clear guidelines on the Group s portability offer, the properties that will be offered, and the process for doing so. This Policy sits alongside the Group s Voluntary Right to Buy (VRtB) Local Sales Policy and is to help ensure that the Group take a fair and consistent approach to applicants. 3.0 Aims and Objectives The policy sets out: How the Group will operate the porting process; The actions expected of the applicant as part of the process; What the Group considers to be a reasonable offer; and When the Group will judge itself to have discharged the requirement to offer a portable discount under the scheme. 4.0 Policy Outline 4.1 Exercising Discretion Not to Sell The porting process can only be initiated by the Group where an applicant is eligible to purchase the property they live in but the property falls into an excluded property category as detailed in Section 5 of the VRtB Local Sales Policy. VRtB Portability Timescales details the timescales to be followed by the Group and applicants at each stage of the porting process. Failure to adhere to the specified timescales will result in the cancellation of an application and applicants will then be required to re-apply for a new Unique Reference Number (URN). 4.2 Outlining Options to the Applicant The Group will advise the applicant if they are eligible to port their discount, and ask the applicant to confirm their intention to port their discount to an alternative property. VRtB Portability Policy Page 2 of 6
3 Applicants wishing to port their discount will be required to fill in a portability questionnaire to enable the Group to match the applicant with alternative properties that are available. If the home the applicant lives in is not eligible for VRtB and they port their discount, they will have to consider the costs of moving from their current home to the one they are buying. Applicants who do not want to accept the portability offer (or who do not indicate within the specified timescales in supporting correspondence if they wish to port their discount) will have their VRtB application cancelled. 4.3 Identifying a Suitable Property to Port a Discount to The Group will make one reasonable offer from its eligible (as defined in the VRtB Local Sales Policy) empty (void) properties within the pilot area. We will try where possible to match the property we offer to the applicants requirements (as provided on the Portability Questionnaire). However, this may not always be possible. In considering what will be a "reasonable offer" the following will be taken into consideration: Property type: The property will need to be the same property type as the property the applicant currently lives in (e.g. flat or house), unless the applicant wishes to downsize to a smaller property e.g. from a house to a flat or bungalow. Number of bedrooms: Consideration will be given to the household's current housing need using the Group's usual letting policy. The Group will not offer an alternative property that has more bedrooms than the household currently needs. Geographical area: Where possible, the property will be in the same or nearby area, taking into account proximity to work, schools and other support needs. Eligibility: The property must be eligible for purchase under the Scheme according to the VRtB Local Sales Policy. Affordability & costs: Applicants will be expected to confirm that they will be able to get a mortgage for the alternative property they are looking to port their discount to, and that they will be able to afford the on-going running costs of the property. VRtB Portability Policy Page 3 of 6
4 Availability: Availability of properties that meet the requirements of the applicant will determine what properties can reasonably be offered within the specified timescales. If a suitable property cannot be found or a mortgage secured in the specified timescales or if the applicant chooses not to accept the offer within the stated timescales, then the VRtB application will be cancelled. 4.4 Sources of Properties to Port Discount to The Group will use their empty properties to match to the applicant's portability questionnaire requirements and an offer will be made to the applicant as soon as a suitable match is made. 4.5 Improvements Improvements that have been made in the applicant s current home (including decorating, alterations, fixtures and fittings) will be disregarded when identifying a suitable alternative. The Group will not be responsible for either compensating or replacing these improvements unless legally required to do so. 4.6 Adaptations Where an applicant requires aids or adaptations in the alternative property, the Group will liaise with the applicant to determine the works required and whether or not this will result in the property being excluded from the Scheme, as per Section 5 of the VRtB Local Sales Policy: Properties where the sale would result in an accounting loss to the Group, it is not economically viable for the Group to suffer a financial loss in operating the Scheme. 4.7 Applicant Declines the Porting Option If the Group has not been able to offer a suitable alternative property within the specified timescales or the property offered is rejected by the applicant, then the VRtB application will be cancelled and the Group will judge itself to have discharged the requirement to offer a portable discount under the Scheme. 4.8 Applicant Agrees to an Available Porting Option Applicants wishing to accept the alternative property will need to complete the full application process see the VRtB Local Sales Policy (Section 7 Application Process). The Group will require 10 working days (minimum) to review the title and obtain Local Authority searches to check the property is free from any exclusions outlined in the VRtB Local Sales Policy and will confirm the offer to the applicant, including the timeframes for accepting the offer. VRtB Portability Policy Page 4 of 6
5 Eligible applicants will have a pre-transfer inspection carried out on their property. Where the property does not meet the Group s required standard, the applicant will be asked to make the necessary improvements within a set timescale. Failure to do so will result in a cancellation of their VRtB application. To avoid unnecessary rent loss on an empty property, the offer will specify the timeframe for the applicant to accept or decline the porting offer, including the requirements for the supply of information that is needed to enable the applicant to progress their purchase of the alternative property. The porting applicant(s) will move to the alternative property and will be granted a new tenancy, during which time they will be expected to complete the purchase of the property. If completion does not take place then the applicant(s) will remain in the alternative property on the tenancy granted. Once the applicant(s) has moved into the empty property, the Group will re-let their former property that has been excluded from the VRtB pilot. 4.9 Calculation of Discount Valuations and discount calculations will be based on the eligibility of the tenant and the property that the applicant ports their discount to, and not the property they are currently living in. The discount will be calculated exactly the same whether they are purchasing the property they live in or a void property and in accordance with the terms of the VRtB Local Sales Policy. 5.0 Equality and Diversity We are committed to promoting equal opportunities in the provision of housing services and in the employment of staff and contractors, regardless of race, colour, nationality, ethnic and national origin, religion or belief, disability, age, gender, marital status or sexual orientation. Our aim is to ensure that our policies and procedures do not create an unfair disadvantage for anyone, either directly or indirectly. 6.0 Complaints A tenant wishing to make a complaint about the level of service provided in dealing with the application process will be dealt with under the Group's complaints policy. Tenants wising to make complaint should contact: VRtB Portability Policy Page 5 of 6
6 For Places for People: or For Derwent Living: or Appeals Tenants wishing to appeal about a decision under this policy should contact: For Places for People: or BSU.complaints@placesforpeople.co.uk For Derwent Living: VRTBappeals@derwentliving.com 7.0 Monitoring and Review We reserve the right to change or modify this policy as the pilot progresses and/or as further guidance is made available to us. The next policy review is scheduled for Associated Documents List of documents and associated policies: Voluntary Right to Buy - Midlands Pilot Guidance for Housing Associations The Group VRtB Local Sales Policy VRtB Portability Timescales The GDPR Policy VRtB Portability Policy Page 6 of 6
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