ICO ZB892725Property Redress PRS051867
Renting your house to the council vs guaranteed rent
Renting your house to the council often means leasing it to the council for a set number of years, in return for a set rent, while the council places and looks after the household who lives there. Below is how those schemes generally work, what to ask before signing, and how a guaranteed rent agreement with VividSpaces compares.
A comparison of two arrangements · Scheme terms vary by council · Written for England
How renting to the council works
Councils need homes for the families they help, and many do not have enough of their own. Leasing from private landlords is one of the ways they close the gap.
The schemes go by different names: private sector leasing, a council leasing scheme, a landlord incentive scheme, or a guaranteed rent scheme run by the council. The broad shape is similar. The council, or a housing association or managing agent working for it, takes a lease on your property for a set number of years. It pays you a set rent, places a household of its choosing, and takes on some or all of the day-to-day management. At the end of the lease the property is handed back.
Some councils instead offer a one-off payment for letting directly to a household they refer. That is a different arrangement: you remain the landlord, and the household’s agreement is with you rather than with the council.
Because every council runs its own scheme, the details on this page are general. Rents, lease lengths, what is included and how the property comes back all vary from one council to the next and change over time, so check the current terms with the council concerned before relying on any of them.
What landlords ask before renting to the council
Five questions worth putting to any scheme in writing, whichever way you go.
How long is the lease?
It varies a great deal. Published council schemes range from one or two years to five. Ask for the exact length, whether there is a break clause, and what notice each side has to give.
What rent will I get?
Each council sets its own rates, often by reference to the Local Housing Allowance for the area. In some places that is below open-market rent; in others the gap is small, or a one-off incentive makes up part of it. Some schemes also take a management fee from the rent. Ask how the figure is set, whether it is reviewed during the term, and what is deducted before it reaches you.
When am I paid?
Schemes differ on frequency and timing. Ask for the payment date, how often it is paid, and whether anything changes while the property is empty.
Who pays for repairs?
Some schemes take on day-to-day repairs and leave the structure, heating and major items with you. Some leave more with the owner. Ask for the repairs schedule in writing before you sign.
How do I get the property back?
Ask what condition it must be returned in, who pays for making good beyond fair wear and tear, and how the lease deals with the household moving out at the end. Get the answers in writing.
How VividSpaces compares
Our occupants also come to us through local authority partnerships, so families are referred and vetted before they arrive. The difference is the agreement you sign, and who stands behind it.
- A company on the lease
- VividSpaces Ltd is named on the lease, so your counterparty is a company on a three to five year commitment rather than an individual.
- A fixed date, including empty months
- The rent is paid on the same date every month for the whole term, whether or not anyone is living there. 100% of rents have been paid on time, on the agreed date.
- At or above open-market rent, nothing deducted
- Your figure is agreed in writing after we visit, and it is never below open-market rent. No management fee, letting fee or re-let fee comes out of it.
- Three to five years, with the work included
- Repairs and maintenance, cleaning, inspections with reports, compliance paperwork and all contact with the family are ours. Your mortgage, buildings insurance, freeholder obligations and the final say on major works stay with you.
Leasing to the council suits some owners well, particularly where the local rate is close to the market or comes with an incentive. If you are deciding between the two, ask both for their terms in writing and compare them line by line. We will send ours at no cost.
Check us first: ICO ZB892725 and Property Redress Scheme PRS051867, both on the public registers.
Renting your flat to the council
Everything above applies to flats, maisonettes and studios too, with two extra things to check.
First, your own lease from the freeholder. Many leases restrict subletting or require the freeholder’s consent, and some limit who you may let to. Read the clause on letting and assignment, or ask your solicitor to, before you sign with anyone.
Second, service charges and ground rent normally stay with you under either arrangement, so take them off the figure when you compare offers. We take on flats as well as houses, from studios upwards, on the same terms. The guaranteed rent scheme page walks through how an agreement runs from first visit to first payment.
Questions landlords ask us
Can I lease my property to the council directly?
Often, yes. Many councils run leasing or landlord incentive schemes and publish the details on their housing pages. Contact your council's housing department to ask what it offers, because schemes and rates vary by area.
Who would I sign with at VividSpaces?
VividSpaces Ltd, a private company. Our company is named on the lease and pays your rent. The families who live in our properties are referred and vetted through local authority partnerships, which is why the two arrangements can look similar from the outside.
Will the rent be lower than letting privately?
Under a council scheme it depends on the area: some rates sit below open-market rent, some are close to it, and some councils add a one-off incentive. A VividSpaces figure is at or above open-market rent. Ask both for written figures and compare like with like, including anything deducted.
Can I get my property back early?
Under either arrangement, only on the terms written into the lease. Ask about break clauses and notice periods before you sign, and get the answers in writing.
Do I need my lender's consent?
Yes, under either arrangement, if the property is mortgaged. Ask your lender specifically about leasing to a company or an organisation, not just about letting. Your buildings insurer needs to know as well.
Find out what your property would earn
Tell us the address. We look at the property and come back with a fixed monthly figure and the term we can offer on it, in writing, at no cost.
Before you call
You will not find landlord reviews on this site. We would rather show you nothing than show you something we invented. Ask us on the call and we will put you on the phone with a landlord we already work with, so you can ask them instead.
VividSpaces Ltd · ICO ZB892725 · Property Redress PRS051867