Commentary on provisions of Act Schedule 2: Further provision about social housing rents
Schedule 2 makes provision for the rent initially payable by tenants of social housing where a new tenant begins a tenancy after the beginning of 8 July 2015. Part 1 of Schedule 2 sets out different principles which are applicable to new and existing social rent housing and Affordable Rent housing.
	Paragraph 1 of Part 1 sets out the rules applicable in the case of existing social rent housing (that is not affordable rent housing). The initial rent payable by that tenant must be no more than the higher of the ‘social rent’ rate, or the ‘assumed rent’ rate, on a pro-rata basis.
	Paragraph 2 of Part 1 sets out the rules applicable in the case of new social housing (that is not affordable rent housing). The rent payable by that tenant is the social rent rate, on a pro-rata basis.
	Paragraph 3 of Part 1 sets out the rules applicable in the case of affordable rent housing. The rent payable by that tenant must be initially set at no more than 80% of the market rate for that social housing or the social rent rate if it is higher, with the 1% reductions then applied in each of the following years. The market rent is to be based on the valuation methods recognised by the Royal Institute of Chartered Surveyors.
	Paragraph 4 enables the Secretary of State to make provision for identifying accommodation that may be let as social housing at an affordable rent, for example, where there are agreements or arrangements with the Homes and Communities Agency, the Greater London Authority, and the Secretary of State.
	Part 2 of Schedule 2 sets out exceptions (paragraph 5) and exemptions (paragraph 6). Provision for exceptions and exemptions mirror the conditions in sections 24 and 25 of the Act.
	Part 3 of Schedule 2 sets out the general provisions. Paragraph 7 provides that regulations under the Schedule must be by statutory instrument subject to the negative procedure. Paragraph 8 gives the Secretary of State power to issue guidance relating to the determination of assumed rent. Paragraph 9 sets out the meaning of 'the relevant day'.