Question 1

What is Exempt Accommodation?

Accepted Answer

Exempt Accommodation is a regulatory status that applies to certain supported housing arrangements. Properties qualifying under this status are exempt from Local Housing Allowance (LHA) caps, meaning tenants can receive enhanced Universal Credit housing element rates. The framework enables access to government-backed payments that are significantly higher than standard private letting rates. This status also provides exemption from mandatory HMO licensing in many cases.

Question 2

How does the framework work?

Accepted Answer

You join the framework as an Operator under a Service Level Agreement. The framework entity provides the regulatory status, compliant tenancy documentation, and payment processing. You use the framework's documentation for tenant placements, which enables the Exempt Accommodation status to apply. Universal Credit housing payments are collected by the framework and distributed to you after deductions. You retain ownership and operational control of your property throughout.

Question 3

What is the relationship between me and the framework?

Accepted Answer

The relationship is governed by a Service Level Agreement, which is a commercial contract setting out responsibilities on both sides. The framework entity appears on tenant paperwork to establish the regulatory status. You remain the property owner and operator, responsible for day-to-day management. This is not a tenancy, partnership, or joint venture. You are an independent operator working within a defined compliance structure.

Question 4

What maintenance am I responsible for?

Accepted Answer

As the Operator, you are responsible for all property maintenance and repairs. This includes general upkeep, responding to repair requests from tenants, arranging tradespeople, and ensuring the property remains in good condition. You pay for all maintenance costs from your income. The framework does not provide maintenance services or cover these costs. This is a hands-on role requiring active property management.

Question 5

How do I handle tenant issues?

Accepted Answer

You handle all day-to-day tenant issues directly. This includes responding to queries and complaints, managing minor disputes between housemates, addressing noise or behaviour concerns, and maintaining good neighbour relations. You are the first point of contact for tenants. Behavioural management is your responsibility. Weekly property visits are best practice, though not mandatory.

Question 6

What happens if a tenant breaches conditions?

Accepted Answer

If a tenant breaches tenancy conditions or fails to sustain their tenancy, there is a defined removal pathway within the framework. You would initiate this process following the documented procedures. The framework provides guidance on handling breaches, but the operational management is your responsibility. Once a tenant is removed, replacement timing depends on demand in your area. You carry void periods during this time.

Question 7

Do I have to accept every tenant referral?

Accepted Answer

No. You can accept or refuse tenant referrals at your discretion. The framework provides referral pathways to help you fill rooms, but acceptance is entirely your decision. You may also self-source tenants who meet the eligibility criteria for the framework. You are responsible for your own occupancy levels and cannot rely on the framework to provide a constant supply of tenants.

Question 8

How do Universal Credit payments work in this model?

Accepted Answer

Tenants placed under the framework claim Universal Credit with enhanced housing element rates that are exempt from LHA caps. These payments are made by the DWP to the framework, not directly to you. The framework processes these payments and distributes the net amount to you after framework deductions. Payments are government-backed, making them more reliable than tenant affordability in standard private letting.

Question 9

What are the framework deductions?

Accepted Answer

The framework deducts a fee from the gross housing payments before distributing to you. This covers the regulatory framework, tenancy documentation, payment processing, and compliance structure. The exact deduction is detailed in the Service Level Agreement. After this deduction, you receive 100% of the remaining income with no further profit share.

Question 10

What is my net income per room?

Accepted Answer

Net income is approximately £200 per room per week for standard UC single adult claimants. For enhanced claimants (those receiving PIP, LCW, WTC, or Carer premiums), net income rises to approximately £231-261 per room per week. These figures are area-dependent and assume typical occupancy levels. Your actual results depend on occupancy rates and your operational effectiveness. These are indicative figures only.

Question 11

Is this a form of rent protection or income assurance?

Accepted Answer

No. This framework does not provide income protection or assurance. Your income depends entirely on occupancy and your management of the property. Void periods are your responsibility. If a room is empty, you receive nothing for that room. The advantage is access to government-backed payment rates, not protection from vacancies. You carry the same operational risk as any landlord, but with higher potential income per occupied room.

Question 12

What compliance standards apply?

Accepted Answer

Properties must meet defined HMO and framework compliance standards. This includes fire safety requirements (interlinked smoke alarms, carbon monoxide detection), a valid fire risk assessment, damp and mould reporting, and general property condition standards. Gas safety certificates and electrical testing are required. Some compliance items can be arranged through the framework's approved panel if needed.

Question 13

Am I exempt from HMO licensing?

Accepted Answer

Properties qualifying under Exempt Accommodation status may be exempt from mandatory HMO licensing requirements in many areas. However, this depends on your specific property and local authority. The exemption applies to the licensing requirement, not to safety and property standards. You must still meet all compliance standards defined by the framework, which are typically equivalent to or higher than HMO licensing requirements.

Question 14

What happens during inspection?

Accepted Answer

All properties are inspected before going live in the framework. The initial inspection verifies that your property meets the defined compliance standards. If the inspection is failed, a re-inspection fee applies after you have addressed the identified issues. Once live, periodic inspections occur during operation to ensure ongoing compliance. You must maintain standards throughout your time in the framework.

Question 15

How do I join the framework?

Accepted Answer

The first step is submitting your property for a suitability assessment. We review the property details including location, type, layout, and condition. If suitable, we discuss the terms and provide documentation on the framework. You review and sign the Service Level Agreement. Your property is then inspected, and once it passes, you can begin accepting tenants. The entire process is documented at each stage.

Question 16

What is the timeline to go live?

Accepted Answer

For standard pathway properties that meet compliance requirements, the typical timeline is 21-28 days from initial submission to being live and accepting tenants. This includes assessment, agreement signing, and inspection. Properties requiring compliance work may take longer depending on the scope of works needed. Complex situations are assessed individually.

Question 17

What documents do I need?

Accepted Answer

You need proof of property ownership or right to operate, valid gas safety certificate, electrical installation condition report (EICR), energy performance certificate (EPC), and fire risk assessment. If you do not have all documentation, some items can be arranged through the framework's approved panel. You also need to provide property details including floor plans or layout information for the assessment.

Frequently Asked Questions

The Framework

Your Role as Operator

Income and Payments

Compliance and Requirements

Getting Started

Important Information

Have a Question Not Listed Here?

Further Reading