7. Capital Grant Recovery - Registered Provider

This chapter sets out the capital grant recovery and recycling requirements for all Registered Providers, alongside The Recovery of Capital Grants and Recycled Capital Grant Fund General Determination 2017 and any applicable grant agreement.

1. Overview

1.1 Purpose

1.1.1 In defined circumstances, capital grant is subject to recovery by Homes England. This chapter sets out capital grant recovery requirements for registered providers only.

1.1.2 Unregistered bodies must refer to Chapter 8 - Capital Grant Recovery - Unregistered Bodies.

1.1.3 The Recovery of Capital Grants and Recycled Capital Grant Fund General Determination 2017 (Registered Provider Recovery Determination 2017) makes provision for the repayment or recycling of capital grant for both not-for-profit and for profit registered providers.

1.1.4 Where registered providers are referred to in the chapter; this includes all registered providers that are operating outside of London or have capital grant vested in properties outside of London.

The recovery of capital grant and administration of Recycled Capital Grant Funds for amounts generated within Greater London falls within the remit and responsibility of the Greater London Authority. Registered providers should refer to the Greater London Authority’s separate arrangements Affordable Housing Capital Funding Guide, for recovery of capital grants and the recycling of capital grant amounts generated within Greater London.

1.1.5 This chapter sets out:

the legislative framework for capital grant recovery including the Registered Provider Recovery Determination 2017
the Relevant Events that trigger capital grant recovery
the circumstances where recoverable capital grant must be repaid to Homes England or recycled into a Recycled Capital Grant Fund
the circumstances where for profit registered providers must repay or recycle an Uplift Amount
the administrative requirements for Single Historical Grant Notification Forms and Quarterly Notification Forms
the administrative requirements for Registered Provider to Registered Provider Transfer Forms
the Priority and Permitted Uses of the Recycled Capital Grant Fund
the requirements for accounting, reporting and auditing a Recycled Capital Grant Fund

1.1.6 Capital Grants

1.1.6.1 These procedures apply to capital grants provided by both Homes England (including all predecessor bodies) and local authorities. These procedures apply equally to historic capital grant paid as Housing Association Grant, Social Housing Grant or Social Housing Assistance.

1.1.6.2 Social Housing Assistance is currently paid to registered providers under section 19 of the Housing and Regeneration Act 2008.

1.1.6.3 Social Housing Grant means capital grants paid under section 18 of the Housing Act 1996.

1.1.6.4 Properties developed by organisations with the assistance of Social Housing Grant under section 27A of the 1996 Housing Act, may as part of their grant agreement have been or are expected to be subsequently transferred to registered providers. These are to be treated as funded under section 18 of the 1996 Housing Act and will therefore be subject to section 18 following transfer.

1.1.6.5 Housing Association Grant means that capital grants paid out under section 50 of the Housing Act 1988 or under section 41 of the Housing Associations Act 1985 or capital grant paid under any enactment replaced by section 41 of the Housing Associations Act 1985.

1.1.7 Definitions in this guide

1.1.7.1 Capital grant refers to all capital grant paid under:

section 19 of the Housing and Regeneration Act 2008
section 18 of the Housing Act 1996
section 50 of the Housing Act 1988
section 41 of the Housing Associations Act 1985
any enactment replaced by section 41 of the Housing Associations Act 1985

1.1.7.2 The term ‘recoverable’, or ‘recovery’ means the obligations that arise where a Relevant Event occurs in respect of capital grant-funded land or property.

The obligations are to either repay, or to recycle the defined Recoverable Amount. The registered provider’s obligation is discharged by repaying the Recoverable Amount to Homes England, or by crediting the Recoverable Amount to the registered provider’s Recycled Capital Grant Fund. Reference to capital grant ‘recovery’ or recoverable amounts’ means the Recoverable Amount calculated in accordance with this guidance unless stated otherwise.

1.1.7.3 Uplift Amount means an amount calculated by reference to any increase in market value of any housing or other land acquired, constructed, converted, improved, or repaired as a result of capital grant. For profit registered providers must calculate and repay or recycle the Uplift Amount when a Relevant Event occurs in respect of capital grant-funded land or property. For more information on uplift, refer to guidance on uplift calculations and methodology for Registered Providers.

1.1.7.4 The Recoverable Amount means, for not-for-profit registered providers the total of capital grant attributable to the property, and in the case of for profit registered providers means the total of capital grant attributable to the property together with any applicable Uplift Amount.

1.1.7.5 Relevant Event refers to the Relevant Events defined in paragraph (7) of the Registered Provider Recovery Determination 2017 which may give rise to the recovery of capital grant. The term does not refer to milestones or events described in other guidance or contract arrangements.

1.1.7.6 The term ‘property’ means all dwellings, hostels (this is not intended to be permanent accommodation), supported housing, temporary social housing or traveller pitches funded by capital grant.

1.1.7.7 The digital system is defined in paragraph 1.4 of the Capital Funding Guide — Chapter 6 — Programme Management. Registered providers must use the Investment Management System when administering and completing Recycled Capital Grant Fund annual returns.

1.2 Context

1.2.1 Legislation requires Homes England to determine capital grant recovery principles. This requirement is outlined in the following legislation:

This legislation is supplemented by Statutory Instrument 2010/862.

1.2.2 Homes England’s current principles governing capital grant recovery following the sale of property (and other defined Relevant Events) are set out in the Registered Provider Recovery Determination 2017.

1.2.3 The key conditions of Capital Grant

1.2.3.1 Capital grant remains vested in the land or asset it was invested in until a Relevant Event for recovery occurs, and the capital grant is repaid or recycled. This is in accordance with the terms of the Registered Provider Recovery Determination 2017 and the terms of the relevant grant agreement. The effect of the relevant Housing Acts and the Registered Provider Recovery Determination 2017 is that capital grant remains vested in the asset in perpetuity until a Relevant Event occurs.

1.2.3.2 Registered providers are responsible for safeguarding capital grant and ensuring it continues to be used for the purposes for which it was awarded. This requirement applies in accordance with the terms of the registered provider’s grant agreement, the Registered Provider Recovery Determination 2017, and this Capital Funding Guide as applicable

1.2.3.3 Capital grant must be used by the original capital grant recipient, it cannot be on-lent or on-granted to a third party without the prior approval of Homes England.

1.2.3.4 Capital grant does not depreciate or amortise over time. Capital grant must be held as a contingent liability within the registered provider’s assets and liabilities register. Accounting treatment does not remove or reduce capital grant liability.

1.2.3.5 Registered providers are required to keep accurate and up to date records in relation to capital grant amounts and conditions of the capital grant. This includes how capital grant has been apportioned across schemes and vests in individual units of housing. This requirement is outlined in the Regulator of Social Housing’s Governance and Financial Viability Standard 2015 2.5 (a), stipulating that registered providers must maintain a thorough, accurate and up to date record of their assets and liabilities. To remain compliant registered providers must hold accurate records of capital grant vested in land and assets.

1.2.3.6 Registered providers are responsible for submitting appropriate notifications to Homes England in the event of a constitutional change, transfers of capital grant funded properties or a Relevant Event in accordance with the terms of their capital grant agreement and section 3 of this Chapter of the Capital Funding Guide, as applicable.

1.2.3.7 Registered providers are responsible for calculating Recoverable Amounts due on Relevant Events and repaying or recycling in accordance with the terms of the Registered Provider Recovery Determination 2017 and this Capital Funding Guide, as applicable.

If there are concerns about the management of historical capital grant, Homes England can remove the registered provider’s right to hold a Recycled Capital Grant Fund and recover any outstanding capital grant and applicable interest.

1.2.3.8 Where systemic failures in grant management are identified, Homes England will report these failures to the Regulator of Social Housing.

1.2.3.9 Homes England cannot write-off capital grant liability. However, Homes England may exercise its discretion to adjust the Recoverable Amount and the timing of recovery in exceptional circumstances. Homes England may agree to vary the apportionment of the capital grant in the housing stock in exceptional circumstances.

If a registered provider wishes to amend or defer capital grant recovery amounts, a business case must be submitted to Homes England detailing why the recovery of the Recoverable Amount is not possible, without adversely affecting a registered provider’s overall viability to provide social housing.

A business case would need to include, where relevant:

a summary of the issue regarding the capital grant liability
information regarding the risk and impact of capital grant repayment
the registered provider’s most recent annual accounts
open market valuations completed by an independent RICS Registered Valuer
sales receipts (including a calculation of the net sales receipt where there is a shortfall between the amount of capital grant owed and the net sales receipt)

To calculate the net sales receipt, deduct the following from the gross sales receipt:

the deemed loan debt
reasonable valuation fees and expenses
reasonable legal fees and expenses relating to the disposal

Supporting documentation confirming the figures used in the calculation should include:

a copy of the open market valuation completed by an independent RICS Registered Valuer
a copy of the valuer’s invoice
a copy of the registered provider’s solicitor’s invoice
details of the loan debt attributable to the property, and how that amount of debt was attributed
details of the amount of capital grant attributed to the property, and how that amount of capital grant was attributed

Adjustment of the Recoverable Amount will only be considered by Homes England in exceptional circumstances, where recovery would lead to financial hardship for a registered provider.

The existence of a shortfall in the calculation of the net sales receipt will not constitute sufficient grounds for adjustment of the Recoverable Amount and financial hardship will be assessed on a case-by-case basis.

Without a business case and approval from Homes England, registered providers must meet any capital grant recovery shortfall from their own resources.

1.2.3.10 Capital grant paid out under Section 27a of the Housing Act 1996 to local authorities and Arm’s Length Management Organisations (ALMOs) may have different funding and recovery conditions.

1.2.3.11 Where this chapter requires an open market valuation, the valuations must comply with the requirements specified in Capital Funding Guide – Chapter 1 – Shared Ownership paragraph 2.3.

2. Relevant Events

2.1 General

2.1.1 This section sets out:

the procedures that must be followed by registered providers when a Relevant Event occurs in connection with capital grant-funded land or property
the basis for registered providers to calculate the capital grant recoverable following one of the Relevant Events set out in the Registered Provider Recovery Determination 2017.

2.1.2 Capital grant recovery is triggered when a Relevant Event occurs on capital grant-funded property or land. Grant recovery means either the repayment or recycling of capital grant.

2.1.3 Relevant Events that trigger capital grant recovery must be notified to Homes England. Notification procedures and timescales are set out in Section 3 of this Chapter.

2.1.4 Homes England will calculate the total amount of capital grant and any interest applicable to be paid and invoice the registered provider for this amount. Registered providers should not make a payment in advance of receiving an invoice.

2.2 Administrative allowances

2.2.1 Registered providers may deduct an administrative allowance when calculating capital grant liability without Homes England’s consent, provided the deduction relates to one of the disposal types listed and does not exceed the prescribed amount for that disposal.

The following administrative allowances may be applied per transaction:

Staircasing sales: £449

Right to Buy sales (house): £701

Right to Buy sales (flat): £1,576

Voluntary and Statutory Purchase Schemes (house) — for example, Right to Acquire and Social HomeBuy: £701

Voluntary and Statutory Purchase Schemes (flat) — for example, Right to Acquire and Social HomeBuy: £1,576

2.2.2 No other deductions can be made from capital grant due for recovery without Homes England’s prior consent. This includes deemed loan debt and other sales costs.

2.3 Capital grant allocated under the Affordable Housing Programme 2011 to 2015

2.3.1 For schemes developed under the Affordable Housing Programme 2011 to 2015, the capital grant liable for recovery is calculated using the funding requested for the scheme or unit, rather than the agreed grant rate.

2.4 Relevant Events where recycling is not an option

2.4.1 Relevant Event (a): when, during the progress of a project approved for capital grant, an instalment of capital grant was claimed or paid in anticipation of a milestone, and that milestone either does not take place or takes place later than anticipated

2.4.1.1 If a milestone is never achieved, Homes England will require repayment of the entire capital grant paid without eligible deductions, plus any interest due as per section 3.7. Repayment will be sought via a reclaim activated within the digital system.

2.4.1.2 If a milestone has occurred later than anticipated, depending on the circumstances, Homes England may decide it will not recover capital grant. However, Homes England will normally require payment of interest on the amount of capital grant paid. For further information on the definitions and requirements of each milestone refer to the Programme Management chapter, section 4: Milestones.

2.4.2 Relevant Event (b): when, after an instalment of capital grant has been advanced upon a project approved for capital grant, Homes England cancels the approval, or approves the project on revised terms which involve a reduced entitlement to capital grant

2.4.2.1 Where an approval is cancelled, Homes England will require repayment of all capital grant paid for the scheme without eligible deductions, plus any interest due as per section 3.7.

2.4.2.2 Where an approval is revised, Homes England will require repayment of any capital grant paid out in excess of the revised amount, plus any interest due as per section 3.7.

2.4.3 Relevant Event (c): discovery, upon an intermediate or final review of the costs of a project approved for capital grant, that an instalment or payment on account of capital grant had been greater than eventually required

2.4.3.1 Where an approval is revised, Homes England will require repayment of any excess capital grant, which is the difference between the amount of capital grant paid and the revised approval, plus any interest due as per section 3.7.

2.4.4 Relevant Event (d): failure to use capital grant for the purpose for which it was paid

2.4.4.1 Homes England will require repayment of all capital grant without eligible deductions, plus any interest due as per section 3.7.

2.4.5 Relevant Event (e): failure to comply with any condition attached to the making of capital grant, including failure to complete a project

2.4.5.1 Homes England will require repayment of all capital grant without eligible deductions, plus any interest due as per section 3.7.

2.4.6 Relevant Event (f): discovery that the Secretary of State, Homes England or a local authority has received incorrect information or made an error in connection with the calculation of capital grant payable or recoverable

2.4.6.1 Depending on the circumstances of individual cases, Homes England will require repayment of capital grant in whole or in part without eligible deductions, plus any interest due as per section 3.7.

2.4.6.2 If Homes England requires repayment of capital grant in part, the amount of capital grant to be repaid will be calculated according to the particular facts relating to the property or scheme in question.

2.4.7.1 Selling land that has been acquired with the aid of capital grant, before the development has either begun or been completed, requires capital grant to be repaid in full.

2.4.7.2 The gross sales receipt for the land sold should not be less than an open market valuation completed by an independent RICS Registered Valuer.

2.4.7.3 Capital grant paid should be recovered from the net sales receipts. That is the gross sales receipt, less eligible deductions.

2.4.7.4 Eligible deductions can be made from the gross sale receipt as:

reasonable valuation fees and associated expenses
reasonable legal fees and associated expenses
reasonable marketing costs

2.4.7.5 Where the net sales receipt of the land or scheme being sold is not sufficient to enable all recoverable capital grant to be repaid, registered providers should refer to paragraph 1.2.3.9.

2.4.7.6 Where only part of the land or scheme is sold, capital grant should be apportioned as required in paragraph 4.6.

2.4.7.7 The sale of spare land, whether sold prior or post development, is not treated as a disposal and not deemed a Relevant Event, therefore no capital grant is recoverable. Spare land includes:

part of a garden or general landscaping
plots of land for electricity sub-stations or similar utilities
land swaps to regularise boundaries
rights of way, access or easements

2.4.7.8 Spare land excludes any area of land designated at project approval for any future phase or phases of development.

2.4.7.9 Registered providers in any doubt whether land can be classified as spare land, should email grant_notifications@homesengland.gov.uk.

2.4.8.1 Homes England will require repayment of all capital grant, without eligible deductions, plus any interest due as per section 3.7.

2.4.8.2 This is an historical Relevant Event. It is not anticipated that this situation will arise going forward.

2.4.9.1 Registered providers are required to inform Homes England immediately of their application to deregister from the Regulator of Social Housing. When a registered provider seeks to deregister, all capital grants previously paid, are required to be repaid. Repayment includes any balance within the registered provider’s Recycled Capital Grant Fund.

Where a registered provider holds stock both outside and inside Greater London, capital grant will have to be repaid to Homes England for the former and the Greater London Authority for the latter. This also applies where a registered provider holds recycled funds with Homes England and Greater London Authority.

2.4.9.2 Homes England will request a full schedule of capital grant-funded assets (outside of London) that the deregistering provider owns. This should include as much detail as possible about the original capital grant funding. Homes England will then confirm the capital grant liability due for repayment under Relevant Event (i).

2.4.9.3 Where a registered provider can demonstrate, to Homes England’s satisfaction, that immediate repayment of capital grant would result in financial hardship, Homes England may consider deferring the repayment or allow repayment by instalments. Registered providers must write to Homes England with a proposed business case for deferral. For details of what to include in a business case, refer to paragraph 1.2.3.9.

Where Homes England approves the business case to defer the recovery of capital grant, the applicant must enter a deed of covenant with Homes England. The deed of covenant ensures that the route to recover capital grant is acknowledged by the deregistering registered provider. Once a deed of covenant is in place, Homes England will defer recovery until a subsequent Relevant Event occurs on the capital grant funded properties secured by the deed.

2.4.9.4 Unless Homes England approves a business case, the capital grant vested in units and sums in the registered provider’s Recycled Capital Grant Fund are to be repaid. Homes England will arrange for the registered provider to be invoiced accordingly.

2.4.9.5 The Regulator of Social Housing cannot approve deregistration until Homes England confirms that the capital grant has been secured through a deed of covenant or that the capital grant has been repaid.

2.4.10 Relevant Event (j): a change in the status of a private Registered Provider from an unincorporated body to an incorporated body by whatever means

2.4.10.1 Homes England recognises that charities and trusts may want to change their legal status from an unincorporated to incorporated body to limit the personal liability of their trustees. It is further recognised that this change in legal status will not necessarily generate a receipt.

Incorporation is a Relevant Event triggering the repayment of capital grant vested in a registered provider’s portfolio of capital grant-funded properties. It is the registered provider’s responsibility to contact Homes England to discuss this change of legal status and their obligations to repay capital grant.

2.4.10.2 Homes England will request a full schedule of capital grant-funded assets (outside of London) that the registered provider owns. This must include as much detail as possible about the original capital grant funding.

2.4.10.3 Once capital grant liability has been confirmed by Homes England, the capital grant is repaid unless otherwise agreed on a case-by-case basis. There are 2 options.

A deed of covenant is required. Both the unincorporated body and the newly incorporated body must acknowledge the capital grant liability in the deed of covenant. Once a deed of covenant is in place, Homes England will defer recovery until a subsequent Relevant Event occurs on a capital grant funded property secured by the deed. Homes England must provide its agreement to the deferral of capital grant recovery and deed of covenant. Registered providers would be required to submit a business case for deferral of capital grant recovery, which must outline financial hardship should the capital grant be repaid. Registered providers should email grant_notifications@homesengland.gov.uk for details of what to include in a business case.

An undertaking letter is required. The provider will not be required to submit a business case or sign a deed of covenant. The undertaking letter, with the provider’s signature, will confirm that no capital grant funded assets will transfer to the newly incorporated body before its registration has been confirmed, plus no de-registration of the unincorporated body will take place before the transfer of capital grant funded assets to the newly incorporated body. The newly incorporated body will become liable for all vested capital grant obligations and capital grant recovery on a future Relevant Event.

2.4.11 Relevant Event (k): all or some of assets of a Registered Provider become vested in a third party

2.4.11.1 Homes England considers the vesting of part, or all, of a registered provider’s assets to a third party who is not a registered provider to be a Relevant Event for recycling. The passing of social housing assets to a third party that is not a registered provider of social housing is a disposal and therefore a trigger for the recycling of capital grant.

2.4.11.2 Where the assets become vested in a third party who is a registered provider, the capital grant liability will transfer to the new registered provider, as if the registered provider had received the capital grant themselves. Refer to paragraph 3.9 for information on Constitutional Change notifications.

2.5 Relevant Events where registered providers have the option of recycling

2.5.1.1 Change of use not eligible for capital grant

2.5.1.1.1 If the registered provider changes the use of the property to one which does not qualify for capital grant, the total capital grant liability vested in the property will be recoverable.

2.5.1.1.2 Where there is any doubt as to whether the future use of the property is capital grant eligible, registered providers should email grant_notifications@homesengland.gov.uk.

2.5.1.2 Change from Supported Housing

2.5.1.2.1 Registered providers must notify Homes England of a change of use from supported housing to general needs. Providers will usually be asked to repay or recycle 12% of all capital grant liable in the supported housing units, except where a change of supported housing client group does not constitute a Relevant Event and capital grant is not recoverable.

2.5.1.3 Temporary change of use with permission

2.5.1.3.1 In exceptional circumstances, Homes England may agree a temporary change of use, without recovery, to one which wouldn’t routinely be eligible for capital grant.

2.5.1.3.2 Registered providers must discuss proposals with Homes England, who will consider individual cases on their own merit. Considerations include but are not limited to:

the level of demand for the existing use of the land or property
the likelihood that it could be returned to affordable housing within 12 months
factors which make it difficult or undesirable to dispose of the land or property
whether the temporary use offers a housing or regeneration function
whether the temporary use falls within the permitted purposes of a registered provider
whether there are any exceptional circumstances which require a temporary change of use

2.5.1.3.3 Homes England’s agreement to a temporary change of use to one which is not eligible for capital grant lasts up to 12 months. The agreement will be subject to review and only in exceptional circumstances renewed.

2.5.1.4 Conversions

2.5.1.4.1 3 Homes England funding programmes allowed registered providers to utilise the concept of ‘conversions’ to aid the additional supply of homes for Affordable Rent. These were the:

Affordable Housing Programme 2011 to 2015
Affordable Homes Programme 2015 to 2018
Shared Ownership and Affordable Homes Programme 2016 to 2021

In certain conversion scenarios and as agreed with Homes England as part of a registered provider’s programme offer, capital grant may not have been subject to recovery provided it generated financial capacity to deliver new supply. The allowed conversions included:

on re-let, existing Social Rent to Affordable Rent
Social Rent to Shared Ownership
Intermediate Rent to Shared Ownership

2.5.1.4.2 Additional financial capacity (conversion capacity) generated from these conversions was only allowed to be used to support the delivery of homes for rent. Conversion capacity generated during the Shared Ownership and Affordable Homes Programme 2016 to 2021 was not allowed to be used to support the delivery of Shared Ownership or Rent to Buy homes.

2.5.1.4.3 In the Affordable Homes Programme 2021 to 2026 and the Social and Affordable Homes Programme 2026 to 2036, the conversion of void Social Rent stock to Affordable Rent to generate additional financial capacity is no longer permitted.

2.5.1.4.4 Conversion capacity funds generated through previous programmes cannot be used to support the delivery of homes under the Affordable Homes Programme 2021 to 2026 or the Social and Affordable Homes Programme 2026 to 2036.

2.5.1.4.5 If registered providers intend to convert the tenures of their stock, consideration must be given whether a Relevant Event would be triggered, such as a change of use or disposal, for capital grant recovery purposes.

2.5.1.5.1 Affordable Housing provided through temporary social housing products such as Lease and Repair Empty Homes, and the historical products of Temporary Social Housing, Temporary Market Rent Housing, Short Life and Housing Associations as Management Agents PLUS, enabled certain properties to provide a limited life for social housing use. Registered providers would have a legal interest in the property by means of a short lease, in most cases up to a maximum of 30 years.

2.5.1.5.2 Where a lease in a property has run its course, and the property was funded under a temporary social housing product, capital grant is no longer recoverable.

2.5.1.5.3 Where there is a change of use of the leased property to one which is not capital grant eligible then capital grant is recoverable. Where the lease is less than 5 years old, capital grant is recoverable in full. If the lease is more than 5 years old, the amount of capital grant recoverable will be reduced pro-rata for the proportion of the life, in completed months, which has been achieved.

2.5.1.5.4 Example capital grant recovery calculation

A registered provider claims £12,000 capital grant for an empty homes scheme delivering one new affordable home from an empty property. The lease is due to run from 01 April 2017 to 31 March 2027.

Capital grant originally claimed (a): £12,000

Term of lease in months (b): 120 months

Amount of capital grant paid for each month of lease (c = a ÷ b): £100

On 12 March 2023, the lease is prematurely terminated or changes to a use which is not capital grant eligible.

Number of complete months lease held (d): 71 (April 2017 to February 2023)

Amount of capital grant used for the purpose for which it was paid (e = (c × d)): £7,100

Amount of recoverable capital grant (f = (a – e)): £4,900

2.5.1.6 Tenure changes

The following tables set out which tenure changes trigger a recovery event, and how much capital grant is to be recovered.

Tenure change	Capital grant recovery event
Social Rent to Affordable Rent	Recovery applies
Social Rent to Shared Ownership	Partial recovery
Social Rent to Intermediate Rent	Not allowed

For a change from Social Rent to Affordable Rent, refer to paragraph 2.5.1.4 for how much capital grant must be recovered.

For a change from Social Rent to Shared Ownership, recover the proportion of capital grant originally allocated to the rented home in direct proportion to the initial share purchased.

For tenanted properties funded for Social Rent under the Affordable Homes Programme 2021 to 2026, refer to paragraph 2.5.4.17, Right to Shared Ownership.

You cannot change Social Rent to Intermediate Rent. Refer to section 3.7 of the Regulator of Social Housing Rent Standard 2026.

From Affordable Rent

Tenure change	Capital grant recovery event
Affordable Rent to Social Rent	No recovery
Affordable Rent to Shared Ownership	Partial recovery
Affordable Rent to Intermediate Rent	Not allowed

For a change from Affordable Rent to Shared Ownership, recover the proportion of capital grant originally allocated to the rented home in direct proportion to the initial share purchased.

For tenanted properties funded for Affordable Rent under the Affordable Homes Programme 2021 to 2026, refer to paragraph 2.5.4.17, Right to Shared Ownership.

You cannot change Affordable Rent to Intermediate Rent. Refer to section 3.14 of the Regulator of Social Housing Rent Standard 2026.

From Shared Ownership

Tenure change	Capital grant recovery event
Shared Ownership to Social Rent	No recovery
Shared Ownership to Affordable Rent	No recovery
Shared Ownership to Intermediate Rent	No recovery

From Intermediate Rent

Tenure change	Capital grant recovery event
Intermediate rent to Social Rent	No recovery
Intermediate rent to Affordable Rent	No recovery
Intermediate rent to Shared Ownership	Partial recovery

For a change from Intermediate Rent to Shared Ownership, recover the proportion of capital grant originally allocated to the rented home in direct proportion to the equity purchased.

2.5.2 Relevant event (m): cessation of use of property or land funded by capital grant

2.5.2.1 Where a property has become void, this is a Relevant Event for recovery of capital grant. Homes England does not expect immediate recovery of capital grant. Homes England, in the first instance, expects registered providers to bring the properties back into use rather than repaying or recycling the capital grant. Where this is not possible and all options have been exhausted, Homes England will offer further discussions with a registered provider to agree how the historical capital grant is treated.

2.5.2.2 Where a registered provider has decided as part of an asset management strategy to vacate a capital grant funded scheme (or multiple dwellings within a scheme) and intend to leave the properties vacant, Homes England considers this a cessation of use.

2.5.2.3 Notification procedures for long-term and permanent voids

2.5.2.3.1 Homes England must be notified no more than 14 days after:

50% or more of the properties in a capital grant-funded scheme have become vacant or there is a decision to vacate 50% or more of the properties in a capital grant-funded scheme
an asset management strategy decision is taken not to relet a property
a decision is taken to apply for planning consent for a change of use (Relevant Event (l)), demolition (Relevant Event (n)) or re-development of the property

Homes England expects that capital grant will be recovered in these events.

2.5.2.3.2 Where there are plans to bring the vacant properties back into use or complete re-development, registered providers must submit these plans to Homes England and must include:

the reason for why the property or properties are being, or were, vacated
proposals and timescales to bring the property back into use

If there are plans to redevelop vacant properties, registered providers must include:

the reason for why this property or properties are unviable for reletting in their current condition
proposals and timescales to achieve redevelopment
evidence of the intention to re-pay or reapportion the historical grant after redevelopment

2.5.2.3.3 If a registered provider is considering applying for new capital grant to redevelop void properties, Homes England must be notified of Relevant Event (m) occurring on the property prior to application. An agreement must be reached with Homes England on the treatment of historical grant ahead of applying for new capital grant.

2.5.2.4 Notification procedures for Temporary Voids

2.5.2.4.1 Homes England must be notified no more than 14 days after a property reaches 12 months of being void. Registered providers are not required to submit proposals to bring temporary void properties back into use. Registered providers must notify Homes England before the 12-month period if:

the property can no longer be relet (refer to 2.5.2.3.1)
there are plans to re-develop the property (refer to 2.5.2.3.2)
another Relevant Event occurs on the property (refer to 3.2)

2.5.3 Relevant Event (n): demolition of property or other buildings funded by capital grant

2.5.3.1 Demolition of capital grant funded property is a Relevant Event for capital grant recovery, and all capital grant attributed to the property in question should be recovered at the point of demolition. Homes England appreciates that property or developments may become unviable or unfit for their current purpose and when all other options have been considered, demolition becomes the only option.

2.5.3.2 Homes England recognises the potential for new social housing units to be built on this land to regenerate the land’s purpose for further social housing use. Homes England will consider how to treat historical grant when such an event occurs.

2.5.3.3 Registered providers must submit a business case for prior approval if they wish to defer the recovery of capital grant following the demolition of a capital grant funded property. The business case must include details of:

outcome of options appraisal for the site
overall proposals for redevelopment
how the development will be funded
overview of project costs and how historic grant will be apportioned on units on the new site
the timeline for delivery

2.5.3.4 Homes England will not accept business cases where properties have already been demolished. Registered providers must submit business cases at least 21 days in advance of demolition. Registered providers must email grant_notifications@homesengland.gov.uk providing all details.

2.5.3.5 Where Homes England agrees to defer capital grant recovery, the registered provider’s obligation to repay or recycle capital grant will arise at the next Relevant Event relating to the land on which the demolished property was located. The capital grant recovery policy and procedures in force at that time will apply.

2.5.3.6 In the meantime, the capital grant is treated as remaining or resting in the land up to a maximum of 5 years. If new social housing units are developed on the demolished land, the older historical capital grant becomes re-invested into the new units alongside the new capital grant.

2.5.3.7 In agreeing to let the capital grant remain vested in the land, any new scheme or property must be built within the existing boundaries of the previous capital grant-funded property’s land.

2.5.3.8 Where capital grant is resting in the land it will not be included in any value for money assessments undertaken by Homes England when deciding whether to provide additional capital grant to redevelop the site. However, both ‘old’ and ‘new’ capital grant will be subject to recovery following future Relevant Events.

2.5.3.9 Example of Recoverable Amount of combined ‘dormant’ and new capital grant

A property is demolished, and the original £50,000 capital grant remains ‘dormant’ in the land.

A new property is built on the site with £20,000 of new capital grant.

The property is sold on the open market, £70,000 capital grant would be recoverable.

2.5.3.10 Capital grant will be recovered if a registered provider demolishes a property and one of the following applies:

the site is to be used for non-income earning purposes (such as forming an open space or facilitating the realignment of roads)
a compensation payment is received by the registered provider

2.5.4 Relevant Event (o): disposal of Property or land funded by Capital Grant by a Registered Provider, except exceptions given in the Registered Provider Recovery Determination 2017

2.5.4.1 Outright sale of land and buildings

2.5.4.1.1 An outright sale of a rental property is:

a sale on the open market
a negotiated private sale
an outright sale to a sitting tenant other than on Right to Buy, Right to Acquire and Social HomeBuy terms

2.5.4.1.2 The gross sale receipt must not be below an open market valuation completed by an independent RICS Registered Valuer.

2.5.4.2 Sale under compulsory purchase orders

2.5.4.2.1 If a property owned by a registered provider is sold under a compulsory purchase order (or where there is written evidence of the threat of a compulsory purchase order), the gross sales receipts will be the higher of 1 of the following:

The receipt from the disposal, plus any compensation received and any interest received as part of the compulsory purchase order
The amount obtained by an independent RICS Registered Valuer acting on behalf of the registered provider in negotiation with the body exercising compulsory powers — eligible deductions will only include the registered provider’s reasonable valuation and legal costs, and an administrative allowance, if the body exercising the compulsory purchase order has not paid them as part of the compulsory purchase order process.

2.5.4.2.2 The amount of interest to be included in the calculation of the gross sales receipt will be the interest paid by the acquiring body, less any tax on that interest that the registered provider may have to pay (if it is non-charitable), plus any tax relief capital grant that it may have received to offset the tax paid.

2.5.4.2.3 Disposal of spare land in these circumstances is covered in paragraph 2.4.7.7.

2.5.4.2.4 The amount of capital grant recovered will not be reduced in respect of any costs incurred by a registered provider in opposing a compulsory purchase order. If the net sales receipt is lower than the capital grant attributable, the registered provider is expected to meet the shortfall from its own funds, refer to paragraph 1.2.3.9.

2.5.4.3 Leases on capital grant funded properties

2.5.4.3.1 When a lease is granted on a capital grant funded property, the secure legal interest in the property has transferred to the lessee. Therefore, this is a Relevant Event (o) disposal that triggers recovery. If the lessee is a registered provider, it is possible to treat the leasing of the property, as a registered provider to registered provider transfer of stock. Further guidance is set out in paragraph 2.5.4.5.

2.5.4.3.2 Where capital grant has been vested in a property that is subject to a lease, (other than under a temporary social housing product) and a Relevant Event has occurred, the full amount of capital grant vested is usually due for recovery. Email grant_notifications@homesengland.gov.uk for confirmation.

2.5.4.4.1 Social housing provided through Lease and Repair Empty Homes, and the historical products Temporary Social Housing, Temporary Market Rent Housing, Short Life and Housing Associations as Management Agents PLUS, enabled certain properties to provide a limited life for social housing use. Registered providers would have a legal interest in the property by means of a short lease.

2.5.4.4.2 Where the registered provider’s (short-term) legal interest in the property has run its course, capital grant is deemed to have achieved its social policy aim and is no longer recoverable.

2.5.4.4.3 Where a lease is sold before it expires capital grant is recoverable. Where the lease is less than 5 years old, capital grant is recoverable in full. If the lease is more than 5 years old, the amount of capital grant recoverable will be reduced pro-rata for the proportion of the life, in completed months, which has been achieved.

2.5.4.4.4 Refer to paragraph 2.5.1.5 for an example on how to calculate the capital grant recoverable on properties funded through one of these temporary lease products.

2.5.4.5 Registered Provider to Registered Provider Transfer of Stock

2.5.4.5.1 The registered provider Recovery Determination 2017 paragraph 7(o), states that a disposal of a capital grant funded property is a Relevant Event unless disposed of to another registered provider (taking the property or land subject to liability for the capital grant within it pursuant the legislation) with the prior approval of the Agency.

2.5.4.5.2 Before the disposal of capital grant-funded property to another registered provider, Homes England’s consent must be given to transfer the capital grant liability vested in the property to another registered provider.

2.5.4.5.3 Where Homes England has provided consent; a recovery event is not triggered. Capital grant becomes recoverable following any future Relevant Event (refer to the Registered Provider Recovery Determination 2017 paragraph 28). If Homes England does not provide consent for the transfer, Relevant Event (o) is triggered, and capital grant is due for recovery on the immediate transfer event.

2.5.4.5.4 Registered providers are required to keep adequate records of capital grant transferred to and from other registered providers or other third parties. Vested capital grant cannot be re-apportioned in anticipation of or after transfer of capital grant funded assets.

2.5.4.5.5 Notification and consent requirements for transfers of capital grant funded property and capital grant liability are set out in paragraph 3.8.

2.5.4.6 Right to Buy

2.5.4.6.1 Certain housing association tenants, usually those of Large-Scale Voluntary Transfer housing associations, with secure tenancies have the Right to Buy under the Housing Act 1985 Right to Buy provisions.

2.5.4.6.2 Registered providers may deduct the following eligible deductions from the gross sale receipt to arrive at the net sales receipt:

the deemed loan debt
reasonable valuation expenses
reasonable legal expenses relating to the disposal
the Right to Buy sales allowance
any previous abortive Right to Buy sales expenses

These fees are not deductible from the capital grant liability vested in the asset or the property.

2.5.4.7 Abortive Sales

2.5.4.7.1 The cost of preparing Right to Buy notices is covered by the Right to Buy sales administration allowance. Homes England may, upon request, consider cases where an application is withdrawn before an offer notice has been served but after a considerable amount of work has been done. Supporting documentary evidence similar to that needed for completed sales will be required. Neither the Right to Buy sales allowance nor actual administrative expenses can be claimed in respect of abortive sales.

2.5.4.8 Reasonable expenses

2.5.4.8.1 Section 4 of the Housing and Planning Act 1986, which took effect on 7 January 1987, requires registered providers to notify prospective Right to Buy purchasers of any known structural defects and in the offer notice binding estimates of service charges for repairs and improvements to be carried out during the initial period of the lease (currently 5 years). For example, service charges cannot be increased above the estimate except to take account of prescribed inflationary allowances. Therefore, in certain circumstances, registered providers may incur expenditure which cannot be recouped from the Right to Buy purchaser via the service charge.

2.5.4.9 Deficits incurred on service charge

2.5.4.9.1 Capital grant recovery arrangements allow registered providers to deduct as an admissible expense a one-off insurance premium against the possibility of hitherto unknown structural defects arising in the ten-year period immediately following the Right to Buy sale, together with the cost of the associated survey.

2.5.4.9.2 Registered providers already have the means of insuring themselves against the possibility of paying for structural work which was not foreseen at the time of a Right to Buy sale of a flat and for a longer period than that entailed by the binding estimates requirement of the 1986 Act. The survey associated with the structural insurance, together with the valuation survey should go some way towards defining what structural defects will need remedial work within the initial period (currently 5 years) and assist in providing a basis for estimating the associated costs.

2.5.4.9.3 Even though rare, estimated work can turn out to cost more than originally anticipated. If the increased costs arise, for example, the opening of a particular element reveals a hitherto unknown defect, normally the structural defects insurance would provide cover. The 1986 Act provides for estimates to be uprated to take account of cost increases limited to inflation, so deficits should arise only in respect of inaccurate estimating of works included in the service charges or where the inflation upgrading does not fully meet the actual increases in costs.

2.5.4.9.4 Where deficits on repairs do arise, these should be offset against any surpluses arising on Right to Buy sales in the same accounting period in which the deficit was incurred.

2.5.4.9.5 In cases where there are no Right to Buy surpluses or insufficient surpluses, capital grant will be paid on any remaining deficit arising on repairs (not improvements) after the association has met the first £250 per unit and 10% of the remainder up to a combined limit of £500 per unit. This payment can be made on a year-by-year basis for the initial period only.

2.5.4.9.6 Capital grant will only be paid where the deficits arise on repairs not on improvements. Applications for capital grant funding of any such deficits, incurred on Right to Buy service charges, must be made by emailing grant_notifications@homesengland.gov.uk, within 6 months of the end of the accounting period in which the deficit was incurred.

2.5.4.9.7 Capital grant will be payable on a per unit basis. Where more than one unit is involved, each unit will be dealt with separately.

2.5.4.10 Survey costs

2.5.4.10.1 In view of the need to provide binding estimates for the first 5 years, registered providers will need to consider the necessity for detailed structural surveys to assess their service charge estimates. Although survey costs are an admissible expense costs must be reasonably incurred given the circumstances of a case.

2.5.4.10.2 Given the limitations on a registered provider’s liability to fund any deficits incurred and, given the possibility that some protection should normally be available by way of insurance cover, the Department for Environment, Food & Rural Affairs will only admit those survey costs which may be regarded as reasonable, under certain circumstances. In addition, registered providers would be expected to have a reasonable knowledge of the state of their properties at any given time.

2.5.4.10.3 Survey costs remain an eligible cost for the purposes of Right to Buy sales and the proposal to assess the reasonableness of such costs relates to the need for a full structural survey and the frequency with which such a survey needs to be updated. There will be circumstances in which a registered provider already had adequate knowledge of the state of a property, for example, due to a previous Right to Buy sale.

2.5.4.10.4 For an abortive Right to Buy sale, a copy of the completion notice or a signed statement by the tenant that they do not intend to proceed with the sale should be attached to the written calculation of recoverable capital grant as supporting evidence.

2.5.4.10.5 If the net sales receipt is insufficient to recover capital grant, refer to paragraph 1.2.3.9.

2.5.4.11 Right to Buy disposals on properties funded with Section 27A capital grant

2.5.4.11.1 Local authority and Arm’s Length Management Organisation properties which received capital grant from Homes England (or one of its predecessor organisations) between 2008 and 2018 may be applicable for the Right to Buy. However, due to the nature of the capital grant funding and the agreements made at the time, a restriction will need to be released on the property with Homes England’s consent.

2.5.4.11.2 For the restriction to be released, registered providers will need to apply via Homes England’s property consents portal with the documentation required on the application. Property Consents will not release the restrictions on the property until Homes England has assurance on capital grant recovery. You must provide Homes England with:

a Single Historical Grant Notification form, refer to paragraph 3.2 for more details
the deed of covenant which outlines the restriction on the property and the calculations to be made to recover capital grant and the agency’s proportion
a calculation of the capital grant recoverable based on the deed of covenant
a section 125 Right to Buy offer notice
an open market valuation completed by an independent RICS Registered Valuer

Email these to grant_notifications@homesengland.gov.uk.

Local authorities may use their house surveyors in line with usual process for local authority Right to Buy transactions.

2.5.4.11.3 Registered providers have the choice to either repay the capital grant to Homes England or sign an undertaking letter to bring the capital grant in line with Section 19 capital grant and allow it to be recycled into their Recycled Capital Grant Fund.

2.5.4.11.4 Local authority and ALMO grant agreements made between 2008 and 2018 agreed to vest Section 19 capital grant, however recycling of capital grant was not permitted. Local authorities and ALMOs will need consent via an undertaking letter from Homes England to recycle capital grant under these agreements.

2.5.4.12 Shared Ownership

2.5.4.12.1 Capital grant recovery for shared ownership arises when:

a shared owner purchases a further share of the property, for further details on notification requirements refer to 3.5
a resale occurs at a higher percentage tranche than the selling shared owner previously owned
a shared ownership property has been repurchased by a registered provider with contributions from a registered provider’s Recycled Capital Grant Fund and subsequently sold on Shared Ownership terms – refer to 4.5.1 for further details and worked examples for repurchases in protected areas

2.5.4.12.2 Capital grant recovery is not applicable for an initial first tranche sale of a shared ownership property with the exception of any of the following:

a rent tenure change to shared ownership
the Right to Shared Ownership
a resale of a shared ownership property at the same tranche percentage as the original shared owner

2.5.4.13 Shared Ownership: staircasing sales

2.5.4.13.1 The following paragraphs refer to homes acquired or developed for sale on Shared Ownership terms through one of Homes England’s current or historical programmes. For Shared Ownership homes delivered through the Affordable Homes Programme 2021 to 2026 and Social Affordable Housing Programme 2026 to 2036, the current model for shared ownership sees the minimum general staircasing transaction reduce from 10% to 5% and introduces the option for shared owners to staircase in 1% increments per year for the first 15 years. For more information, refer to MHCLG’s technical consultation response on the new Shared Ownership model. The principles of capital grant recovery detailed in this chapter apply equally to all staircasing transactions including 1% transactions.

2.5.4.13.2 When further shares, after the initial share, are purchased, these are Relevant Events for recovery. Not for profit registered providers are not required to notify Homes England for each staircasing event, though records of the calculations must be retained. When 100% staircasing is reached, Homes England is to be notified and a schedule of all previous staircasing transactions and calculation of capital grant to be recovered must be attached to the notification form. Homes England reserve the right to request copies of all staircasing calculations. Registered providers are still required to record all tranche sales which incur capital grant recycling in their Recycled Capital Grant Fund annual return.

2.5.4.13.3 For profit registered providers must notify Homes England of each staircasing tranche after the initial sale. They must attribute the Uplift Amount and provide supporting calculations on each staircasing transaction as per paragraph 3.4.

2.5.4.13.4 The gross sale receipt of the share purchased must not be below the applicable percentage of an open market valuation completed by an independent RICS Registered Valuer and as detailed in the Shared Ownership lease. Where a 1% staircasing transaction is being undertaken on homes funded through the Affordable Housing Programme 2021 to 2026 and Social Affordable Housing Programme 2026 to 2036, then there is no requirement to obtain a RICS valuation as the valuation is derived using the Land Registry’s House Price Index.

2.5.4.13.5 Example of a 10% staircasing transaction

Property value: £200,000

Share to be purchased: 10%

Value of share: £20,000

How to calculate capital grant recovery on staircasing sales

Capital grant attributable to the property: £40,000

Initial share sold: 40%

Capital grant of £40,000: attributed to the registered provider’s 60% share

Additional share to be purchased: 10% (= 17% of the original remaining 60% share)

Recoverable capital grant: 17% of £40,000 capital grant in property (= £6,667)

Staircasing sales admin allowance: £449

Recoverable capital grant less the admin allowance: £6,218

2.5.4.13.6 If the net sale receipt is insufficient to enable the full recovery of the attributable capital grant on an interim staircasing sale, then recovery of the shortfall may be deferred until the next staircasing sale on the property.

2.5.4.13.7 Registered providers must retain evidence and written calculations on the shortfall and total capital grant deferred in the interim staircasing sale. On the final staircasing sale, Homes England requires the full capital grant attributable to be recovered which includes previously deferred capital grant recovery amounts and the capital grant recovery amount to be recovered on the final sale.

2.5.4.13.8 There may still be a balance leftover in the net sale receipt after recovering the capital grant attributable to the share being purchased. Where there is a left-over balance, registered providers must initially use this balance to repay or recycle any previously deferred recoverable capital grant in this or another property within the same scheme.

2.5.4.13.9 Sales on Shared Ownership terms of property included in an Estates Renewal Challenge Fund Programme will be subject to capital grant recovery, except when such sales without recovery were agreed as part of the Estates Renewal Challenge Fund delivery plan.

2.5.4.14 Shared Ownership: voluntary sale of rented property

2.5.4.14.1 Registered providers should note that this section covers voluntary sales on a property on a Shared Ownership basis with no discount. It should not be confused with Social HomeBuy, which is the voluntary sale of property outright or on a Shared Ownership basis with a discount funded by Homes England.

2.5.4.14.2 The gross sale receipt of the share being sold must not be below an open market valuation completed by an independent RICS Registered Valuer. No administrative allowances may be deducted.

2.5.4.14.3 If the net sale receipt is insufficient to enable the full recovery of the attributable capital grant on an interim staircasing sale, then recovery of the shortfall may be deferred until the next staircasing sale on the property.

2.5.4.14.4 Registered providers must retain evidence and written calculations on the shortfall and total capital grant deferred in the interim staircasing sale. On the final staircasing sale, Homes England requires the full capital grant attributable to be recovered which includes previously deferred capital grant recovery amounts and the capital grant recovery amount to be recovered on the final sale.

2.5.4.15 Shared ownership: Repossessions

2.5.4.15.1 For an overview of repossessions, refer to the Shared Ownership chapter.

2.5.4.15.2 Repossession occurs where the leaseholder’s mortgage company takes possession of the property, and then does 1 of the following:

sells the lease to another purchaser
staircases to a higher percentage (but not to 100% ownership) and sells the lease to another purchaser
staircases to 100% and then sells the property on the open market

2.5.4.15.3 The mortgage company uses the sale receipt to pay the outstanding loan from the defaulting leaseholder and (in the second and third scenarios) will pay a sum to the registered provider as the staircasing premium. If there is any money left over after the loan has been paid off and the registered provider has been paid, the mortgage company passes it to the leaseholder or other charge holders.

2.5.4.15.4 Repossessions involving staircasing are theoretically the same as any other tranche sale where the registered provider receives a capital receipt. However, the Mortgagee Protection Clause means that the gross sale receipt that the registered provider receives from the mortgage company is not always the value of the property multiplied by the registered provider’s equity share. Where this is the case it is not a requirement that registered providers must first seek Homes England’s consent to waive the recovery of capital grant.

2.5.4.15.5 The Mortgagee Protection Clause in the Shared Ownership lease allows the leaseholder’s mortgage lender to staircase at a lower price than that normally required. The amount to be paid for the outstanding share is the actual sale price of the property (not the equity percentage of a property valuation) less those sums due to the mortgage company. In other words, the sum of the mortgage company’s reasonable and proper expenses incurred in:

exercising the right to purchase a new lease or the freehold
exercising its powers of sale
the amount of principal due under the mortgage approved under Clause 34(15) (or equivalent) of the lease
up to 18 months unpaid interest
advances to the registered provider to cover any sums such as rent and service charges due under the lease.
reasonable legal fees
reasonable estate agent’s fees
reasonable valuation fees
other costs incurred in connection with the protection of the security or sale of the property

2.5.4.15.6 Refer to the Shared Ownership guidance for lenders, landlords and conveyancers for more information about collaboration and good practice between landlords and lenders when a shared owner is facing financial difficulties or repossession.

2.5.4.15.7 The approach to calculating recoverable capital grant, including deferment and potential waiving of capital grant recovery is the same as for any other Shared Ownership staircasing, except:

registered providers may accept (for recovery purposes) the valuation by the mortgage company’s valuer instead of one by an independent RICS Registered Valuer
the gross sale receipt is the money received from the mortgage company, as stated in the mortgage company’s statement of account

2.5.4.15.8 Any shortfall on staircasing receipts remains a debt due to the registered provider by the defaulting leaseholder.

2.5.4.15.9 Where the leaseholder’s mortgage company has used the Mortgagee Protection Clause in the Shared Ownership lease, and the registered provider has suffered a shortfall on staircasing receipts, recoverable capital grant may be waived by the registered provider or deferred (without prior consent of Homes England) if the registered provider confirms in supporting documentation that they:

will provide a written calculation of the recoverable capital grant
are in the process of obtaining legal advice or have already obtained legal advice on prospect of recovering the money due from the leaseholder
will take all necessary steps to recover the money due
undertake to credit all money received, less reasonable costs incurred, to the Recycled Capital Grant Fund, or pay the money to Homes England, if applicable, within 14 days of receipt

2.5.4.15.10 In deciding what action is reasonable to pursue the debt registered providers should obtain written legal advice. A copy of the solicitor’s advice must be kept with the written calculation of recoverable capital grant for audit purposes.

2.5.4.15.11 If registered providers act as advised by their solicitor, and no receipts are generated, any expenses or abortive costs will not be allowed as eligible deductions unless the surpluses from Shared Ownership staircasing sales completed in the previous twelve months are insufficient to cover the costs. Where registered providers incur such a loss, they can deduct the costs incurred from a future capital grant recovery on a Shared Ownership sale or staircasing in that scheme.

2.5.4.15.12 If the amount for which the defaulting leaseholder is liable under the Mortgagee Protection Clause would have left the registered provider with a surplus after full capital grant recovery, then it is a matter for the registered provider to decide whether to seek to recover this amount when taking action to recover other monies due.

2.5.4.15.13 Where capital grant recovery is to be reduced or deferred, the supporting documentation should include:

an appropriate certification signed by the registered provider authorised signatory together
a copy of the completion statement provided by the leaseholder’s mortgage company
a copy of the mortgage company’s explanation if the sale price is lower than the valuer’s valuation

2.5.4.16.1 When a co-ownership (equity sharing) society sells a property to one of its members, the society should calculate the capital grant attributable to the property pro rata, based on the capital amounts of the purchasing members.

2.5.4.16.2Homes England does not permit deferral or waiving of capital grant by the registered provider of the recoverable capital grant. The amount of capital grant recoverable is not reduced, if the sales receipt is less than the capital grant recoverable. There are no eligible deductions for this product.

2.5.4.16.3 Where a case is handled solely by the co-ownership society, the recoverable capital grant must be repaid to Homes England.

2.5.4.16.4 Where a case is handled through a registered provider that registered provider should credit its own Recycled Capital Grant Fund with the recoverable capital grant.

2.5.4.17 Right to Shared Ownership

2.5.4.17.1 The Right to Shared Ownership is only applicable to new Affordable Rent or Social Rent homes funded and delivered as part of the Affordable Homes Programme 2021 to 2026. For more information on the Right to Shared Ownership, including exemptions, refer to the Right to Shared Ownership: initial guidance for registered providers.

2.5.4.17.2 Where homes are sold on a Right to Shared Ownership basis the initial sale represents a capital grant recovery event. This capital grant recovery is based on the proportion of capital grant originally allocated to the rented home in direct proportion to the equity purchased. Any future staircasing transactions will follow the same Shared Ownership principles for staircasing. Registered providers must keep accurate records of staircasing transactions including amounts of capital grant recovered at each tranche sale.

2.5.4.17.3 Example of Right to Shared Ownership calculation

A registered provider receives £50,000 capital grant for an Affordable Rent home. The tenant has exercised their Right to Shared Ownership previously purchasing an initial 10% share. They now wish to staircase a further 20%.

Capital grant claimed for the rented home (a): £50,000

Initial Right to Shared Ownership share purchased (b): 10%

Capital grant recovered at initial Right to Shared Ownership sale (c = a × b): £5,000

Capital grant remaining after initial Right to Shared Ownership sale (d = a – c): £45,000 (for the registered provider’s 90% share)

Additional share to be purchased: 20%

Capital grant to be recovered at additional tranche sale: £10,000 (20% of £50,000)

2.5.4.17.4 Registered providers may deduct eligible deductions from the gross sale receipt to calculate the net sales receipt. The eligible deductions from the gross sales receipt are set out in 1.2.3.9.

2.5.4.17.5 No administrative allowance may be deducted.

2.5.4.17.6 If the net sales receipt is insufficient to enable the recovery of capital grant attributed to the share being sold, registered providers should recover capital grant in part and the shortfall should then be recovered when the sale of a further share of that dwelling, or the sale of shares of any other property within the same scheme occurs.

2.5.4.17.7 Capital grant on individual properties where the Right to Shared Ownership is exercised should be apportioned as set out in the guidance in section 4 of this chapter.

2.5.4.17.8 Homes England will recover Uplift Amounts on any initial Right to Shared Ownership sale from for profit registered providers. This is in addition to the amount of capital grant directly related to the initial share purchased by the applicant. For profit registered providers should use the staircasing calculation. Refer to guidance on determining the uplift amount in grant recovery calculations. On the final staircasing sale, Homes England requires the full capital grant attributable to be recovered, unless a business case is submitted and approved as per paragraph 1.2.3.7.

2.5.5 Relevant Event (p): a disposal of property or land funded by capital grant that would give rise to a repayment of discount under section 155 of the Housing Act 1985

2.5.5.1 This is an historical Relevant Event, relating to the repayment of discounts repayable in a particular timeframe, which has now passed. It is not anticipated that this situation will arise in the future.

2.5.6 Relevant Event (q): a disposal of property or land funded by capital grant that would give rise to a repayment of discount under sections 11 and 12 of the Housing Act 1996

2.5.6.1 This is an historical Relevant Event, relating to the repayment of discounts repayable in a particular timeframe, which has now passed. It is not anticipated that this situation will arise in the future.

2.5.7 Relevant Event (r): a disposal of property or land funded by capital grant that would give rise to the repayment of a payment made to a tenant as an incentive to vacate a dwelling owned by a Registered Provider under the terms of the mortgage deed requiring repayment of the original payment

2.5.7.1 This Relevant Event relates to Tenant Incentive Schemes. These schemes had a requirement that discounts received by tenants would need to be repaid if the property was disposed of within 3 years of purchase. Given the length of time that has now elapsed since discounts under Tenant Incentive Schemes were available as the scheme was withdrawn circa 1999, Homes England does not envisage any recovery issues arising in the future.

2.5.8 Relevant Event (s): the redemption, or a disposal of property or land funded by capital grant giving rise to the redemption, of an equity percentage loan secured by an equity mortgage

2.5.8.1 An owner redeeming all or part of an equity loan, either voluntarily or when obliged to do so upon selling their property, is a Relevant Event.

2.5.8.2 Equity loans paid by registered providers or HomeBuy Agents under HomeBuy (that is, products existing before the 2006 to 2008 National Affordable Housing Programme), Expanded Open Market HomeBuy (EOMHB) or Government Loan Only (GLO).

2.5.8.3 Equity loan redemption worked examples

2.5.8.3.1 Redemption of a pre-2006 to 2008 National Affordable Housing Programme HomeBuy Equity Loan – Rising market

Value of property at original sale = £180,000

Percentage of value covered by equity loan = 25%

Amount of capital grant = £45,000

Value of property at redemption = £250,000

Value of percentage covered by equity loan = £62,500 (25% of £250,000)

Amount of capital grant to be recovered = £45,000

2.5.8.3.2 Redemption of a pre-2006 to 2008 National Affordable Housing Programme, HomeBuy Equity Loan – Falling market

Value of property at original sale = £180,000

Percentage of value covered by equity loan = 25%

Amount of capital grant = £45,000

Value of property at redemption = £150,000

Value of percentage covered by equity loan = £37,500 (25% of £150,000)

Amount of capital grant to be recovered = £37,500

Remaining capital grant written off

2.5.8.3.3 Redemption of an EOMHB Equity Loan – Rising market

Value of property at original sale = £180,000

Percentage of value covered by capital grant funded equity loan = 12.5%

Amount of capital grant = £22,500

Value of property at redemption = £250,000

Value of percentage covered by capital grant funded equity loan = £31,250 (12.5% of £250,000)

Amount of capital grant to be recovered = £22,500

2.5.8.3.4 Redemption of an EOMHB Equity Loan – Falling market

Value of property at original sale = £180,000

Percentage of value covered by capital grant funded equity loan = 12.5%

Amount of capital grant = £22,500

Value of property at redemption = £150,000

Value of percentage covered by capital grant funded equity loan = £18,750 (12.5% of £150,000)

Amount of capital grant to be recovered = £18,750

Remaining capital grant written off

2.5.8.3.5 Redemption of a GLO Equity Loan – Rising market

Value of property at original sale = £180,000

Percentage of value covered by equity loan = 17.5%

Amount of capital grant = £31,500

Value of property at redemption = £250,000

Value of percentage covered by equity loan = £43,750 (17.5% of £250,000)

Amount of capital grant to be recovered = £31,500

2.5.8.3.6 Redemption of a GLO Equity Loan – Falling market

Value of property at original sale = £180,000

Percentage of value covered by equity loan = 17.5%

Amount of capital grant = £31,500

Value of property at redemption = £150,000

Value of percentage covered by equity loan = £26,250 (17.5% of £150,000)

Amount of capital grant to be recovered = £26,250

Remaining capital grant written off

2.5.8.3.7 The recoverable capital grant is the lower of:

the capital grant attributable to the property (including any capital grant paid to cover the scheme on costs)
the amount attributable to the percentage of the open market value (where property values have fallen) for which the equity loan accounts - if the funds redeemed after the first charge lender has recovered the outstanding mortgage monies are insufficient to cover the required amount, the shortfall will be written off by the registered provider

2.5.8.3.8 If the loan is being redeemed voluntarily (or in other circumstances not involving the sale of the property, such as redemption of the main mortgage with no replacement senior lender), administrative costs associated with the redemption are not eligible deductions from the gross sales receipt. This is where there are no costs of sale, as there is no sale, only the redemption of the loan.

2.5.8.3.9 Equity loans paid by equity loan providers under Open Market HomeBuy products from 1 April 2008 (other than under transitional arrangements in place up to 30 September 2008).

2.5.8.3.10 On receipt of the homeowner’s equity loan repayment the equity loan provider will be required to process that receipt in accordance with the terms agreed with Homes England and the relevant clauses in their equity loan agreement.

2.5.8.4 Equity loans paid under the Mortgage Rescue Scheme (Shared Equity product)

2.5.8.4.1 The Mortgage Rescue scheme is now closed, and the following requirements apply to equity loan redemptions for property funded under this programme. An owner redeeming all or part of a Mortgage Rescue equity loan, either voluntarily or when obliged to do so under the terms of their equity loan agreement, is a Relevant Event.

2.5.8.4.2 On receipt of the equity loan redemption payment, the registered provider will be required to ring-fence 73% of this amount and either repay this to Homes England or place it in its Recycled Capital Grant Fund. The remaining 27% is to be retained by the registered provider.

2.5.8.5 Equity loans paid through FirstBuy, HomeBuy Direct and Help to Buy: Equity Loan

2.5.8.5.1 For these products, capital grant was paid directly to the homeowner in the form of a loan and the equity loans are now repaid directly to the Mortgage Administrator. The homeowner’s solicitor then repays 50% of the amount redeemed to the developing loan provider and 50% to Homes England. The whole process is administered through a contract, with the capital grant being sent to the developer and Homes England via the homeowner’s solicitor on the day of completion, the process for which is managed by the Mortgage Administrator. Therefore, there is no option to recycle recovered capital grant in respect of FirstBuy, HomeBuy Direct or Help to Buy: Equity Loan.

2.5.9 Relevant Event (t): the sale of a Dwelling under the Voluntary Right to Buy or the Right to Acquire

2.5.9.1 The disposal of a property funded by capital grant under the Voluntary Right to Buy or the Right to Acquire is a Relevant Event for the recovery of capital grant.

2.5.9.2 Registered providers should note that the net proceeds of sale from the Right to Acquire are not recoverable and it is only the capital grant that is recoverable. The net proceeds can be reinvested in line with the registered provider’s objectives and purposes.

2.5.9.3 Right to Acquire properties funded with Section 27A capital grant

2.5.9.3.1 Local authority and Arm’s Length Management Organisation properties which received capital grant from Homes England (or one of its predecessor organisations) between 2008 and 2015 may be applicable for the Right to Acquire. Due to the nature of the capital grant funding and the terms within the associated grant agreement, lease of a restriction requires Homes England’s consent.

2.5.9.3.2 For the restriction to be released, registered providers will need to apply via Homes England’s property consents portal with the documentation they require on the application. Homes England will not release the restrictions on the property until Homes England have assurance on capital grant recovery. You must provide the following to Homes England:

a Single Historical Grant Notification form, refer to paragraph 3.2
the deed of covenant which outlines the restriction on the property and the calculations to be made to recover capital grant and the agency’s proportion
a calculation of the capital grant recoverable based on the deed of covenant
an independent Open Market Value from a RICS Registered Valuer

Email these to grant_notifications@homes.england.gov.uk.

Local authorities may use their in-house surveyors in line with usual process for local authority Right to Buy transactions

2.5.9.3.3 The registered provider will have the choice to either repay the capital grant to Homes England or sign an undertaking letter to bring the capital grant in line with Section 19 capital grant and allow it to be recycled into their Recycled Capital Grant Fund.

2.5.9.3.4 Some local authority and ALMO grant agreements made between 2008 and 2018 agreed to vest Section 19 capital grant but were not permitted to recycle in these agreements. Local authorities and ALMOs will need to apply for consent from Homes England to recycle capital grant under these agreements.

3. Notifications

3.1 Overview

3.1.1 Registered providers must notify Homes England of a Relevant Event in accordance with the Registered Provider Recovery Determination 2017 and the Capital Funding Guide. Timescales for notifications are detailed in this section.

3.1.2 Registered providers are required to notify Homes England of Relevant Events via Homes England’s Single Historical Grant Notification Form as detailed in paragraph 3.2.

3.1.3 For Relevant Events (o), (s) and (t), registered providers are only required to notify Homes England retrospectively of these Relevant Events at the end of each quarter as detailed in paragraph 3.3.

3.1.4 Registered providers are required to keep a written record of capital grant recovery calculations for audit purposes. Supporting documentation must be kept together with the written record of the calculation. The written record of the calculation must be included on the Homes England notification form when there is a Relevant Event for capital grant recovery.

3.1.5 The notification process for registered provider to registered provider transfers of capital grant funded properties is set out in paragraph 3.8.

3.1.6 The notification process for constitutional change is set out in paragraph 3.9.

3.2 Relevant Event notification procedure: Single Historical Grant Notifications

3.2.1 Registered providers must use the Single Historical Grant Notification form to notify Homes England of a Relevant Event. Refer to notify Homes England of a Historical Grant Recovery or Constitutional Change.

3.2.2 Registered providers must notify Homes England of a Relevant Event if using the Single Historical Grant Notification Form by the following deadlines:

Relevant Events (a) to (f) — registered providers must notify Homes England no more than 14 days after the date which the Relevant Event occurred
Relevant Events (g) to (t) — registered providers must notify Homes England no less than 14 days before the anticipated date of the Relevant Event - for Relevant Events (o), (s) and (t) registered providers may use the Quarterly Notification Form as set out in paragraph 3.3
Relevant Event (m) — refer to paragraph 2.7.2 for further information on timescales for notifications

Any deviation to the timescales must be agreed in advance with Homes England.

3.2.3 Registered providers must submit full and accurate details on the Single Historical Grant Form.

3.2.4 Late notifications are subject to interest as set out in paragraph 3.7.

3.3 Relevant Event notification procedure: Quarterly Notifications

3.3.1 Registered providers may use the Quarterly Notification Form to notify Homes England of Relevant Events (o), (s), (t) that have occurred in the previous quarter.

3.3.2 Registered providers must email grant_notifications@homesengland.gov.uk for a Quarterly Notification Form template. Homes England will only accept Quarterly Notifications on the Quarterly Notification Form template.

3.3.3 Registered Providers must submit the Quarterly Notification Forms by the deadline for the relevant quarter.

Quarter 1 (1 April to 30 June)

Deadline to submit the Quarterly Notification Form: 31 July

Quarter 2 (1 July to 30 September)

Deadline to submit the Quarterly Notification Form: 31 October

Quarter 3 (1 October to 31 December)

Deadline to submit the Quarterly Notification Form: 31 January

Quarter 4 (1 January to 31 March)

Deadline to submit the Quarterly Notification Form: 30 April

3.3.4 Registered providers are expected to be consistent with the notification method for Relevant Events (o), (s) and (t) and should not submit Single Historical Grant Notification Forms for these Relevant Events if choosing to use the Quarterly Notification Form.

3.3.5 If a registered provider chooses not to use the Quarterly Notification Form, they must use the Single Historical Grant Notification Form and notify Homes England 14 days in advance of Relevant Events (o), (s) and (t).

3.3.6 Registered providers must include full and accurate details on the Quarterly Notification Form.

3.3.7 Late notifications are subject to interest as set out in paragraph 3.7.

3.4 Relevant Event notification procedure: For Profit Registered Providers

3.4.1 For profit registered providers are required to notify Homes England of Relevant Events in line with the guidance set out in section 3 of this chapter.

3.4.2 For profit registered providers are subject to the requirement to recover the attributable capital grant alongside the Uplift Amount upon the occurrence of a Relevant Event. The sum of these 2 amounts is the Recoverable Amount.

‘Uplift Amount’ means an amount calculated by reference to any increase in market value of any housing or other land acquired, constructed, converted, improved, or repaired as a result of capital grant.

3.4.3 Alongside their Single Historical Grant or Quarterly Notification forms, for profit registered providers must provide :

uplift calculations in line with Homes England’s guidance on determining the uplift amount in grant recovery calculations
a breakdown of how the capital grant and total scheme costs have been apportioned between the units in the scheme (for multiple unit schemes)
open market valuations showing the value of the property prior to staircasing or the Relevant Event completed by an independent RICS Registered Valuer

Where the disposal is a 1% staircasing sale, for profit registered providers are not required to obtain open market valuations. For profit registered providers should evidence market value by providing:

the calculation of the Additional Percentage Value - this is set out in the Homes England Standard Shared Ownership model lease in Schedule 7 (house) or Schedule 10 (flat)
evidence of the Land Registry HPI at the time of the calculation was completed
the Additional Percentage Value Notice for the 1% staircasing sale dated no more than 3 months before the staircasing sale

3.4.4 Homes England will check uplift calculations to confirm the Uplift Amount. Where Homes England determines a different Uplift Amount is recoverable following completion of the Relevant Event, Homes England’s determination will be final, and the revised Recoverable Amount is payable.

3.5 Shared Ownership staircasing notifications

3.5.1 Registered providers are not required to notify Homes England of a first tranche sale where the property is funded as Shared Ownership. A change of tenure from rent to Shared Ownership may incur capital grant recovery. Refer to paragraphs 2.5.1.6 - Tenure Changes and 2.5.4.17 - Right to Shared Ownership for further information.

3.5.2 Interim Shared Ownership staircasing sales are Relevant Events and registered providers must recycle the attributed capital grant proportionate to the share staircased. Registered providers must report recycled funds from interim staircasing sales on their annual Recycled Capital Grant Fund return.

3.5.3 Not for profit registered providers are not required to notify Homes England of Interim Shared Ownership staircasing sales.

3.5.4 For profit registered providers must notify Homes England of all staircasing sales except first tranche sales. For profit registered providers will need to follow the notification requirements in paragraph 3.4 for each staircasing sale.

3.5.5 Not for profit registered providers only need to notify Homes England of staircasing transactions when the property has been staircased to 100%. This is classed as Relevant Event (o) - disposal. A full schedule of calculations for previous staircasing events must be supplied with the notification form. Calculations should demonstrate that the total capital grant liability, minus any administrative allowances, has been recovered.

3.5.6 Registered providers must keep a written record of their capital grant recovery calculations

3.6 Repayment procedure

3.6.1 Where the Recoverable Amount is to be repaid and not recycled, Homes England will raise an invoice which will state the terms and schedule for payment. Registered providers should not forward a payment in advance of receiving an invoice.

3.7 Interest chargeable on delayed notification or repayment of capital grant

3.7.1 Where registered providers are required to notify Homes England of a Relevant Event and that notification is not received by the appropriate deadline set out in paragraphs 3.2 and 3.3, Homes England will add interest to the amount of capital grant to be recovered.

3.7.2 Homes England requires for profit registered providers to calculate and repay or recycle the Uplift Amount on the occurrence of a Relevant Event. If the notification is delayed, Homes England will require the addition of interest to this Uplift Amount. For any questions regarding the rate of interest or the interest calculation, registered providers should email grant_notifications@homesengland.gov.uk.

3.7.3 For the purposes of charging interest following delayed notification, the date of the Relevant Event will be determined by Homes England, based on paragraph (7) of the Registered Provider Recovery Determination 2017. This will be the date the Relevant Event occurred.

3.7.4 Interest will not be charged if Homes England has been informed in writing of a likely delay and has agreed in writing that the circumstances do not justify the charging of interest for a particular period.

3.7.5 Homes England will charge additional interest if the invoice for repayment of capital grant, or interest due to late notification, is not paid within the timescales specified in the invoice.

3.8 Registered Provider to Registered Provider Transfer of Capital Grant-Funded Properties Notification Procedure

3.8.1 Where a registered provider intends to transfer capital grant-funded properties, together with the associated capital grant liability vested in the properties, to another registered provider, Homes England’s consent must be obtained prior to the completion of the transfer.

3.8.2 To obtain consent for the transfer of capital grant liability, registered providers must submit the following:

a Registered Provider Transfer Form
a schedule of assets of the properties transferring which should detail the property addresses, including postcodes, and the capital grant attributed to each property
an independent open market valuation completed by a RICS Registered valuer if under circumstances set out in 3.8.4

Email these to grant_notifications@homesengland.gov.uk at least 14 days before completion of the transfer.

Where the transfer is from a not-for-profit registered provider to a for profit registered provider, the schedule of assets should detail the open market value attributed to each property.

3.8.3 Where the submission is compliant, Homes England will issue written consent by email to both the transferring and receiving registered providers. Both registered providers must acknowledge and accept the terms of the consent prior to completion of the transfer.

3.8.4 Where a not-for-profit registered provider transfers capital grant funded properties to a for profit registered provider, an independent open market valuation completed by a RICS Registered Valuer must be provided to Homes England at the point of transfer. The for profit registered provider will use that open market valuation, at a subsequent Relevant Event, as one of the figures required to calculate the Uplift Amount (if applicable).

3.8.5 Where a for profit registered provider transfers capital grant funded properties to a for profit registered provider, an open market valuation is not required. The profit registered provider will use attributable total scheme costs, at a subsequent Relevant Event, as one of the figures required to calculate the Uplift Amount (if applicable).

3.8.6 Refer to how to calculate uplift upon Relevant Events for more information.

3.9 Constitutional change notifications

3.9.1 Registered providers with a legal interest in any capital grant funded properties or land, must notify Homes England when they are intending to make changes to their name or organisational structure. This may affect the legal ownership of the homes and therefore affect the legal route to future capital grant recovery. This may for example include, but is not limited to, a change in organisational ownership, company structure, amalgamations, transfer of engagements, mergers or de-mergers.

3.9.2 Registered providers must notify Homes England using the Constitutional Change Notification form .

3.9.3 Constitutional Change Notification forms should usually be submitted at least 10 business days prior to the change event. Business days are Monday to Friday inclusive.

3.9.4 Where the capital grant recipient or its holding company is a public limited company (and is prohibited by listing rules from doing so) or a Change in Control occurs automatically by operation of law the notification must be no more than 10 days following the event.

4. Capital Grant liability

4.1.1 This section sets out the requirements for apportioning capital grant to properties on a scheme. Capital grant must be apportioned to individual properties within a scheme at Practical Completion. The methodology used to apportion capital grant must be applied consistently to those properties for all capital grant recovery calculations and Relevant Events. Registered providers must not recycle or repay capital grant on different properties in the same scheme with different apportionment methods.

4.1.2 The following principles of apportioning capital grant where a Relevant Event has occurred within a scheme applies regardless of the programme under which funding has been given.

4.2 Apportionment of capital grant: Rented properties

4.2.1 Examples of methods accepted by Homes England for apportioning capital grant to rented properties are:

equal division
floor area

4.2.2 The total amount of capital grant paid in respect of a scheme and to be apportioned must include:

new and recycled capital grant received on the initial development of the scheme
capital grant paid to clear any loan on a scheme originally approved under section 41 of the Housing Associations Act 1985, and the works funded under later legislation.
capital grant paid for re-improvement, major repairs, and minor miscellaneous works
capital grant paid on any previous scheme on the site, which has been demolished whose recovery has been deferred (that is, previous grant less any capital grant already recovered)

4.3 Apportionment of capital grant: Shared Ownership properties

4.3.1 For Shared Ownership schemes approved on or after 1 April 1993, capital grant can be apportioned by:

equal division
floor area

4.3.2 For Shared Ownership schemes approved before 1 April 1993, the capital grant apportionment calculations consider the percentage of equity initially sold if calculating capital grant apportionment by Market Value.

4.4 Initial sales of existing rented stock to Shared Ownership

4.4.1 A dwelling forming part of a registered provider’s existing rented stock may be sold voluntarily on Shared Ownership terms. The capital grant attributable to the initial share sold will be all the capital grant that is attributable to the dwelling.

4.5 Older Person’s Shared Ownership (OPSO). Rural Restricted Equity, Rural Buyback and Rural Repurchase

4.5.1 In all cases, registered providers must refer to the procedures under which these schemes were developed for the conditions relating to sale and capital grant recovery.

Older Person’s Shared Ownership staircasing sales example

25% of a dwelling was initially purchased, with capital grant attributable to the remaining 75% of the dwelling of £45,000.

The shared owner then buys the maximum shares allowed which is a further 50% share of the dwelling.

The capital grant attributable to that staircasing is two-thirds of £45,000 = £30,000.

The balance of £15,000 capital grant remains in the property in perpetuity or until the unit ceases to be an OPSO unit.

4.5.2 For Older Person’s Shared Ownership schemes where the units were sold outright at a discounted sale price, the grant-funded discount is not recoverable.

4.5.3 Leasehold Schemes for the Elderly (LSE) – For information on capital grant recovery for units funded by historical LSE scheme, email grant_notifications@homesengland.gov.uk.

4.5.4 For Rural Restricted Equity and some Protected Area properties, a cap is placed on the proportion of equity that the shared owner can purchase, for example, restricting the shared owner to 80% ownership. Unlike the OPSO provisions, all capital grant paid on the property is recoverable, if possible, from the proceeds of that restricted staircasing.

4.5.5 Rural Restricted Equity and some Designated Protected Area property staircasing sales examples

25% of a dwelling was initially purchased and the capital grant attributable to the unsold equity was £21,000.

With a cap of 80% sales, that leaves 55% of the equity available to be purchased in the future (80% - 25%)

If the shared owner buys a further 40% of the dwelling, the capital grant attributable to that staircasing is 40 ÷ 55 × £21,000 = £15,273.

If the net sale receipt is £19,800 then £15,273 of capital grant would be recovered, with the balance of £4,527 accruing to the registered provider.

If the net sale receipt is £9,200 then £9,200 of capital grant will be recovered with the balance of £6,073 (£15,273 – £9,200) of the recoverable capital grant being deferred until the next staircasing sale.

The capital grant attributable to the final staircasing to 80% ownership would be (£21,000 – £15,273) £5,727 plus the deferred £6,073 = £11,800. If the net sale receipt of that staircasing purchase were only £11,000 then £800 would be written off by the registered provider.

4.5.6 For Rural Repurchase or Designated Protected Area Repurchase schemes, capital grant recovery is calculated on a unit basis rather than a scheme basis. In other words, a shortfall on one dwelling in the scheme is not rolled forward to other dwellings in the scheme.

4.5.7 When the final staircasing of such a Rural or Designated Protected Area property takes place, registered providers may immediately write off any shortfall of recoverable capital grant; shortfalls are not deferred to the next staircasing sale within that scheme. There is no requirement to consult with Homes England before taking action to write off capital grant under these circumstances.

4.5.8 However, when considering how to apportion capital grant between a Rural or Designated Protected Area properties in the scheme, this must be calculated in accordance with market value and not on any other basis.

4.5.9 Upon the resale of a Designated Protected Area repurchased property, capital grant recovery as per Shared Ownership staircasing rules will apply. However, the first sale of shares in a repurchased property will not be deemed an exempt disposal and capital grant will become recoverable immediately when the share is sold and a sales receipt is realised.

4.5.10 The sale of the initial share of a property being developed for sale on Shared Ownership terms is deemed an exempt disposal for capital grant recovery purposes. This is because when bidding for capital grant for newly developed Shared Ownership property landlords are required to plan and anticipate the percentage and value of the initial share to be sold and then to take the forecast sales receipt into account.

4.5.11 Potentially it is possible that new capital grant, or a combination of new and recycled capital grant, may have funded the full or partial repurchase price of Designated Protected Area Repurchase property. In these circumstances Homes England anticipates that the landlord would:

not necessarily have been aware of the leaseholder’s intention to sell and have therefore been unable to forecast and plan the repurchase
be obliged to repurchase the property
be obliged to repurchase the property within the time scale contained in the lease
be unaware of the ‘share’ the next eligible applicant could afford and sustain and therefore unable to forecast the sales receipt of that share

Homes England accepts that the landlord would not be able to take future sales receipts into account when bidding for new capital grant to fund the repurchase. As, potentially, Homes England could fund up to 100% of the repurchase price, it’s therefore required that capital grant become immediately recoverable once the sales receipt becomes available.

4.5.12 The resale of a new or recycled capital grant-funded Designated Protected Area repurchased property must be at market value. Following the resale of the initial share, recoverable capital grant should be calculated according to the percentage of the share sold compared to the total new or recycled capital grant used to fund the repurchase. From the gross sales receipt landlords can deduct the following to get to the net sales receipt:

Homes England’s staircasing administrative allowance, refer to paragraph 2.2
any deemed loan debt apportioned as appropriate

The deemed loan debt is not deductible from the capital grant liability in the property or asset.

4.5.13 The following examples are based on a property with a market value of £250,000 being repurchased in part or in full.

4.5.14 Repurchase funded by new and recycled capital grant (1)

Share to be repurchased: 80%

Value of share to be repurchased: £200,000

Landlord’s own contribution: Nil

New and recycled capital grant: £200,000

Total new and recycled capital grant as a percentage of repurchase: 100%

First share to be resold: 30%

Sales receipt for 30% share sold: £75,000

Less staircasing allowance of £449: £74,551

Recoverable capital grant: £200,000 × 30% = £60,000

Capital grant recovered: £60,000

Surplus to be retained by landlord: £14,551

4.5.15 Repurchase funded by new and recycled capital grant (2) (where the value of the sales receipt does cover the recoverable capital grant)

Share to be repurchased: 100%

Value of share to be repurchased: £250,000

Landlord’s own contribution: Nil

New capital grant and recycled capital grant: £250,000

Total capital grant and recycled capital grant as a percentage of repurchase: 100%

First share to be resold: 50%

Sales receipt for 50% share sold: £125,000

Less staircasing allowance of £449: £124,551

Recoverable capital grant: £250,000 × 50% = £125,000

Capital grant recovered: £124,551

Capital grant deferred to future staircasing: £449

4.5.16 Repurchase funded by landlord’s reserves and new capital grant

Share to be repurchased: 80%

Value of share to be repurchased: £200,000

Landlords own contribution: £100,000

New capital grant: £100,000

Total capital grant as a percentage of repurchase: 50%

First share to be resold: 25%

Sales receipt for 25% share sold: £62,500

Less staircasing allowance of £449: £62,051

Recoverable capital grant: £100,000 x 25% = £25,000

Recovered capital grant: £25,000

Surplus to be retained by landlord: £37,051

4.5.17 Repurchase funded by a private loan, new and recycled capital grant (1)

Share to be repurchased: 80%

Value of share to be repurchased: £200,000

Landlord’s private loan: £100,000

New and recycled capital grant: £100,000

Total new and recycled capital grant as a percentage of repurchase: 50%

First share to be resold: 25%

Sales receipt for 25% share sold: £62,500

Less deemed loan debt (possibly loan of £100,000 × 25% = £25,000): £37,500

Less staircasing allowance of £449: £37,051

Recoverable capital grant: £100,000 x 25% = £25,000

Capital grant recovered: £25,000

Surplus to be retained by landlord: £12,051

4.5.18 Repurchase funded by a private loan, new and recycled capital grant (2) (where the initial sales receipt does not cover the recoverable capital grant)

Share to be repurchased: 100%

Value of share to be repurchased: £250,000

Landlords private loan: £150,000

New and recycled capital grant: £100,000

Total new and recycled capital grant as a percentage of repurchase: 40%

First share to be resold: 25%

Sales receipt for 25% share sold: £62,500

Less deemed loan debt (possibly loan of £150,000 x 25% = £37,500): £25,000

Less staircasing allowance of £449: £24,551

Recoverable capital grant: £100,000 x 25% = £25,000

Capital grant recovered: £24,551

Capital grant deferred to future staircasing: £449

4.5.10 Upon staircasing, the remaining new and recycled capital grant is recoverable on the same basis and allowing for the same eligible deductions.

Following on from the examples in 4.5.14 to 4.5.18, a year later the leaseholder wishes to purchase a further share. At the time of staircasing the property has a market value of £260,000.

4.5.19 Repurchase funded by new and recycled capital grant (1)

Property value: £260,000

Original, new and recycled capital grant to enable repurchase: £200,000

Additional shares to be purchased: 10%

Sales receipt for 10% share purchased: £26,000

Less staircasing allowance of £449: £25,551

Recoverable capital grant: £200,000 x 10% = £20,000

New and recycled capital grant to be recovered: £20,000

Surplus retained by landlord: £5,551

4.5.1.20 Repurchase funded by new and recycled capital grant (2)

Property value: £260,000

Original, new and recycled capital grant to enable repurchase: £250,000

Additional shares to be purchased: 10%

Sales receipt for 10% share purchased: £26,000

Less staircasing allowance of £449: £25,551

Recoverable capital grant: £250,000 x 10% = £25,000

Additional recoverable capital grant previously deferred: £449

New and recycled capital grant to be recovered: £25,449

Surplus retained by landlord: £102

4.5.1.21 Repurchase funded by landlord’s reserves and new capital grant (1)

Property value: £260,000

Original new and recycled capital grant to enable repurchase: £100,000

Additional share to be purchased: 10%

Sales receipt for 10% share purchased: £26,000

Less staircasing allowance of £449: £25,551

Recoverable capital grant: £100,000 × 10% = £10,000

New and recycled capital grant to be recovered: £10,000

Surplus retained by landlord: £15,551

4.5.1.22 Repurchase funded by private loan, and new and recycled capital grant (1)

Property value: £260,000

Original new and recycled capital grant to enable repurchase: £100,000

Additional share to be purchased: 10%

Sales receipt for 10% share purchased: £26,000

Less deemed loan debt (possibly loan x 10% = £10,000): £16,000

Less staircasing allowance of £449: £15,551

Recoverable capital grant: £100,000 x 10% £10,000

New and recycled capital grant to be recovered: £10,000

Surplus retained by landlord: £5,551

4.5.1.23 Repurchase funded by private loan, and new and recycled capital grant (2)

Property value: £260,000

Original new and recycled capital grant to enable repurchase: £100,000

Additional share to be purchased: 10%

Sales receipt for 10% share purchased: £26,000

Less deemed loan debt (possibly loan × 10% = £15,000): £11,000

Less staircasing allowance of £449: £10,551

Recoverable capital grant: £100,000 × 10% = £10,000

New and recycled capital grant to be recovered: £10,000

Surplus retained by landlord: £551

4.6 Apportioning capital grant on land

4.6.1 When a registered provider sells the land or buildings that make up an entire scheme no apportionment of capital grant is necessary. The recoverable capital grant will be the entirety of the amount of capital grant given to the scheme. For profit registered providers, will also need to add the Uplift Amount based on the current market value on the point of sale.

4.6.2 However, registered providers may sell land that is a part of a capital grant-funded scheme under the following scenarios:

scenario 1: spare land that is part of a completed development
scenario 2: land swap or sale, using land from a completed development, to enable site assembly undertaken either by the registered provider or another body
scenario 3: land or part-completed properties sold or swapped prior to completion of the development

It is necessary to apportion capital grant with a methodology that considers the possibility of each scenario.

4.6.3 Spare land – scenario 1

4.6.3.1 Capital grant will not be recovered when a registered providers dispose of spare land associated with a scheme. Spare land includes:

part of a garden or general landscaping
plots of land for electricity sub-stations or similar utilities
land swaps to regularise boundaries
rights of way, access, or easements

4.6.3.2 Spare land excludes any area of land designated at scheme approval for any future phase or phases. If a registered provider is in doubt about whether land should be classed as spare, they should consult Homes England.

4.6.4 Land swaps and sales (completed developments) – scenario 2

4.6.4.1 Where a scheme has been completed, the capital grant should have already been apportioned between the properties. There will therefore be no capital grant apportioned to the parts of the scheme that are landscaping, roads and so on. The disposal by sale or barter of this land is a Relevant Event, but there is no attributed capital grant to be recovered.

4.6.5 Land swaps and sales (partially completed developments or before building work starts) - scenario 3:

4.6.5.1 A registered provider may want to dispose of part of the site or some of the partially completed dwellings to another registered provider. If the registered provider can still deliver the same number of units with the same sizing agreements and comply with all other contractual conditions of their allocation, then all the capital grant can be apportioned to the properties, rather than being apportioned between land and properties. Therefore, there will be no capital grant attributed to land. Although a Relevant Event will have occurred, there is no capital grant to be recovered, unless it is disposed to an unregistered body.

4.6.5.2 After disposing of part of the site or some of the partially completed dwellings, a registered provider may not be able to deliver the same number of units or fulfil contractual conditions of their allocation. In this situation, registered providers must seek confirmation from the relevant contract manager as to whether Homes England is willing to continue to fund the scheme. Homes England may be willing to allow a scheme to proceed at lower level of capital grant and will consider whether the provider may be able to deliver the balance of units elsewhere.

4.6.5.3 If the capital grant payable for the new scheme is less than had already been paid for the cancelled scheme, this will fall under Relevant Event (c). The amount already paid to the provider less the amount payable for the new scheme is recoverable.

4.6.5.4 Where Homes England cannot agree proposed changes to the development, the scheme may be cancelled. This would trigger repayment of all capital grants paid on the scheme.

5. Recycled Capital Grant Fund

5.1 General

5.1.1 This section sets out how the Recycled Capital Grant Fund must be administered, including how recycled capital grant should be credited to the fund, and how the fund should be managed. The following arrangements apply to all recycled capital grant generated outside of Greater London and these requirements are applicable to all classes of registered provider that operate a Recycled Capital Grant Fund.

5.1.2 Local authorities must refer to their contractual agreements which require local authorities to be able to account for and report separately on the operation of their Recycled Capital Grant Fund Local authorities still must complete Recycled Capital Grant Fund annual returns on the digital system.

5.1.3 Some historic grant agreements with local authorities and ALMOs did not anticipate that local authorities and ALMOs would in future be permitted to operate a Recycled Capital Grant Fund. Local authorities or ALMOs must email grant_notifications@homesengland.gov.uk if they would like to recycle capital grant from properties funded from the following programmes:

2008 to 2011 National Affordable Housing Programme (NAHP)
2011 to 2015 Affordable Housing Programme (AHP)
2015 to 2018 Affordable Housing Programme (AHP)

5.1.4 The principles for the establishment and use of a Recycled Capital Grant Fund are outlined in paragraph 19 of the Registered Provider Recovery Determination 2017.

5.1.5 Recycled capital grant held in a Recycled Capital Grant Fund may be spent by registered providers on priority and permitted uses outlined in section 6.

5.1.6 Upon a Relevant Event which allows for the option of recycling capital grant, registered providers are required to calculate the amount of recoverable capital grant to be credited to the fund. For each Relevant Event, registered providers must follow the notification requirements set out in Section 3 of this chapter and retain records of the calculation and amount of recoverable capital grant.

This amount must be credited to the Recycled Capital Grant Fund with immediate effect from the date of the Relevant Event.

5.1.7 Each registered provider must weigh up any advantage of being able to recycle capital grant against the cost of setting up and administering a Recycled Capital Grant Fund including the likelihood of the fund balance being spent within 3 years.

5.1.8 Recovered capital grant, Uplift Amounts and any notional interest credited to the Recycled Capital Grant Fund are treated as recycled capital grant.

5.1.9 Recycled capital grant is recoverable and must be repaid or recycled upon a Relevant Event. Properties funded with ‘recycled capital grant’ have the same notification and recovery requirements as properties funded with new capital grant

5.1.10 Each year, registered providers must calculate and credit notional interest to their Recycled Capital Grant Fund. This notional interest may only be spent on priority or permitted uses outlined in section 6.

5.1.11 Where a property is disposed to tenants under Social HomeBuy or Right to Acquire procedures, registered providers must recycle only the attributed capital grant through their Recycled Capital Grant Fund. The statutory discount does not need to be recycled and credited to the Recycled Capital Grant Fund.

5.1.12 Where Recycled Capital Grant Fund (generated from any Affordable Housing programme source) is contributed towards a scheme allocated under either the Rough Sleeping Accommodation Programme or the Single Homelessness Accommodation Programme, the capital grant will from that point become restricted to the Agreed Purposes of these programmes and must not be used or recycled for any other purpose, unless otherwise agreed by Homes England and MHCLG. For further details, refer to the Specialist homes chapter, sections headed Rough Sleeping Accommodation Programme (RSAP) and Single Homelessness Accommodation Programme (SHAP).

5.2 Disposal Proceeds Fund

5.2.1 The Disposal Proceeds Fund (DPF) was the previous fund that was used to credit the net proceeds of these discounts; however, the DPF has now been withdrawn. There may still be Disposal Proceeds Funds vested in assets also funded by capital or recycled capital grant. The DPF does not need to be recycled alongside any capital or recycled capital grant.

5.2.3 Disposal Proceeds Funds can be reinvested by the registered provider with their surpluses in line with their objectives and purposes.

5.3 Circumstances leading to repayment of Recycled Capital grant

5.3.1 Under certain circumstances, Homes England will require repayment in total or in part of any current balance in the Recycled Capital Grant Fund. These circumstances are when:

a) Homes England discovers that a registered provider has provided incorrect information or made an error in the calculation of amount or notional interest in its Recycled Capital Grant Fund.

b) Homes England discovers that a registered provider has not applied all or part of its recycled capital grant to a priority or permitted use within 3 years

c) Homes England discovers that a registered provider has failed to administer its Recycled Capital Grant Fund according to the principles set out in the Registered Provider Recovery Determination 2017 2017 and this guide.

d) Homes England discovers that a registered provider has failed to report or supply information on the amounts of capital grant in its fund according to timetables established by Homes England and detailed in this guide.

e) Homes England discovers that a registered provider has applied its recycled capital grant for purposes other than those set out in the Registered Provider Recovery Determination 2017 and this guide.

f) Homes England decides that a registered provider’s financial circumstances or management position are such that either:

recycled capital grant held in a Recycled Capital Grant Fund is at risk
the option of crediting recycled capital grant into the Recycled Capital Grant Fund in the future would put the recycled capital grant at risk

g) Homes England decides that a registered provider is unlikely to be able to apply all or part of its recycled capital grant to a priority or permitted use within 3 years

h) The Regulator of Social Housing deregisters a registered provider under section 118 or 119 of the Housing and Regeneration Act 2008.

i) The registered provider falls under Regulatory supervision, and the Regulator of Social Housing decides that retention of recycled capital grant by the registered provider would be inappropriate. The Regulator of Social Housing may change this decision at any time after the registered provider ceases to be supervised by the Regulator. Any recycled capital grant repaid during the period of supervision will not be returned.

j) Any other relevant provision arising under Relevant Events 7a to j from the Registered Provider Recovery Determination 2017.

k) A registered provider fails to administer their Recycled Capital Grant Fund in accordance with the principles of paragraph 19 of the Registered Provider Recovery Determination 2017.

5.3.2 For (a) and (b), Homes England will require repayment of the specific sum involved.

5.3.3 For (c) to (i) Homes England will require repayment of all, or part, of the current balance.

5.3.4 In addition, for (c), (d) and (e), any recycled capital grant from the fund already spent by the registered provider using processes or for purposes which do not comply with those set out in the Registered Provider Recovery Determination 2017 and this guide will need to be repaid.

5.3.5 Homes England may not allow registered providers to operate a Recycled Capital Grant Fund in the future if any of the circumstances in 5.3.1 occur. A registered provider’s right to recycle capital grant will be withdrawn and all future Relevant Events will require repayment.

5.3.6 In all circumstances, notional interest that was credited to the fund will require repayment.

5.3.7 Where repayment of monies previously credited to a Recycled Capital Grant Fund is required, Homes England will issue an explanatory letter and invoice. The letter will include the payment schedule and terms.

5.4 Accounting arrangements for the Recycled Capital Grant Fund

5.4.1 The Recycled Capital Grant Fund must be supported by a robust audit trail of relevant paperwork detailing individual amounts of:

recycled capital grant credited to the fund
recycled capital grant by local authority
notional interest added
any withdrawals made

5.4.2 Registered providers may be asked to produce evidence of the audit trail. The supporting documentary evidence must be retained for ten years.

5.4.3 Rules covering the disclosure of Recycled Capital Grant Fund balances and transactions are contained within the current Accounting Direction for Social Housing published by the Regulator of Social Housing.

5.5 Expenditure from the Recycled Capital Grant Fund

5.5.1 Properties funded with recycled grant will be subject to the same regulatory requirements, contractual conditions, and requirements as those funded with new Social Housing Assistance from Homes England.

5.5.2 Where properties funded through recycled capital grant are defined as social housing under sections 68 to 70 of the Housing and Regeneration Act 2008, they will become or remain subject to the regulatory standards.

5.5.3 Registered providers are encouraged to commit recycled capital grant at the earliest opportunity.

For the Continuous Market Engagement funding route, registered providers withdraw from their Recycled Capital Grant Fund upon the first payment milestone.

For Strategic Partners, registered providers withdraw from their Recycled Capital Grant Fund at the point a site is made an Active Site on the digital system. Refer to Strategic Partnerships, Chapter 14, section 1.3 for further information.

5.5.4 These may differ depending on the scheme type and under which programme the scheme was developed. For details on payment milestones, refer to the Programme Management chapter, section 4.

5.5.5 Expenditure from the fund must be debited on a first in, first out basis. Refer to 5.10.3 as an example.

5.6 Recycled Capital Grant Fund levels

5.6.1 When developing property using recycled capital grant, the registered provider can determine the amount of recycled capital grant to apply up to the applicable maximum amount.

5.6.2 The maximum amount of recycled capital grant that can be used on the scheme is calculated as follows:

The total capital costs of the scheme (that is, the amount capitalised on the balance sheet) less:

the sum of any sales receipts (if applicable)
the notional loan debt that the registered provider is able to support from the rental stream produced by the properties (if applicable)
any other resources, which includes the registered provider’s own resources

5.6.3 Registered providers must ensure they are compliant with State Subsidy Control rules. Recycled capital grant cannot fund 100% of any development costs. Recycled capital grant is intended to address viability gaps that a registered provider could not otherwise meet.

5.7 Approval and accounting

5.7.1 Homes England’s prior written approval is not necessary for the use of the fund or the calculation of the amount to be withdrawn from the Recycled Capital Grant Fund, unless a Permitted Use business case is required as per paragraph 6.2.

5.8 Addition of notional interest

5.8.1 Annually, on 31 March registered providers must add notional interest to their Recycled Capital Grant Fund.

5.8.2 If the fund balance is £250,000 or less, there is a notional interest rate that the registered provider must use. This rate is that which a registered provider would obtain by placing the money in the high interest deposit account operated by its own clearing bank. Therefore, a registered provider should keep a record of these rates available for its auditor.

5.8.3 If the fund balance is greater than £250,000, the notional interest rate is linked to the Bank of England’s base lending rate, as follows:

Size of Recycled Capital Grant Fund Rate of notional interest calculations:

£250,001 to £500,000: base lending rate less 75 basis points
£500,001 to £750,000: base lending rate less 50 basis points
£750,001 to £1,000,000: base lending rate less 25 basis points
over £1,000,000: base lending rate less no basis points

A floor of 0% is applicable to notional interest calculations. Therefore, if the Bank of England base rate is at such a level as to produce a nil or a negative amount of notional interest, then no interest should be added for the relevant period.

5.8.4 Registered providers must calculate notional interest, according to a 365-day year convention, that is:

Balance × rate × (days for which this balance held ÷ 365)

The base rate used in the calculation must be amended in line with clearing bank or Bank of England rate changes.

5.8.5 Registered providers that pay corporation tax on their Recycled Capital Grant Fund interest earnings may deduct that tax from their Recycled Capital Grant Fund balance at the standard corporation tax rate applicable for the time.

5.8.6 In the calculation, notional interest must be compounded on 31 March of each year. Registered providers must identify whether Recycled Capital Grant Fund credits are recovered capital grant or notional interest. However, when spending recycled capital grant, registered providers will withdraw from the balance of the account, and do not need to identify whether it is withdrawing recovered capital grant or notional interest credits.

5.8.7 Notional interest must be calculated from the date on which the recovered capital grant is required to be credited to the Recycled Capital Grant Fund, being the date of the Relevant Event.

5.9 Transferring balances between Registered Providers

5.9.1 In defined circumstances, registered providers may transfer all or some of their recycled capital grant to other registered providers where this helps create a usable balance or supports the quick and efficient use of recycled capital grant to meet local priorities. This includes downward staircasing, under the terms defined in paragraph 6.1.3.

5.9.2 Transfers may occur between registered providers which are:

members of a group structure (although each member of the group must have its own Recycled Capital Grant Fund)
members of a Development Partnership or Consortium which is currently in receipt of capital grant

5.9.3 Transfers may also occur subject to Homes England’s prior agreement. Email rcgf@homesengland.gov.uk where these are:

to another local registered provider
to a similar type of registered provider (for example, a specialised housing provider)

5.9.4 Recycled capital grant generated in Greater London must only be spent within Greater London, and recycled capital grant generated outside Greater London must not be spent in Greater London.

5.9.5 The receiving organisation must ensure:

it documents the transfer
it receives notification of the date on which each sum being transferred was originally credited to the transferor’s Recycled Capital Grant Fund
the date on which it credits its own Recycled Capital Grant Fund is no more than one day after the date the sums are debited from the transferor’s fund

5.9.6 The donating registered provider must debit the sum from its own Recycled Capital Grant Fund on the date the amount is transferred and document this accordingly.

5.9.7 The transfer of recycled capital grant between registered providers’ Recycled Capital Grant Funds does not reset the 3-year repayment schedule. Transferred recycled capital grant must still be spent within 3 years of the end of the financial year in which the original Relevant Event occurred.

5.9.8 Transfers to and from other registered providers must be separately accounted for in the Recycled Capital Grant Fund annual returns, to avoid the possibility of double counting withdrawals and inputs. Refer to paragraph 7.2.

5.9.9 Where a transfer of engagements has occurred, the process to transfer of recycled capital grant must be followed. The full Recycled Capital Grant Fund balance must be transferred to the receiving registered provider. On 31 March an Recycled Capital Grant Fund annual return should be made for both the receiving and the transferring registered provider on the digital system. The transferring registered provider’s Recycled Capital Grant Fund annual return should cover the period up to the transfer of recycled capital grant.

5.10 Repayment of Recycled Capital Grant

5.10.1 If registered providers do not withdraw the recycled capital grant from their Recycled Capital Grant Fund within 3 years, Homes England will require repayment recycled capital grant that has reached 3 years of age.

5.10.2 Homes England reserves the right to enforce repayment of recycled capital grant at any time.

5.10.3 Notional interest due will be calculated by Homes England and will be added to and identified in the invoices sent to registered providers.

5.10.4 Registered providers must pay the invoice by the due date or be liable for interest for late payment.

5.10.5 Registered providers must not send payment to Homes England without having first received an invoice.

5.10.6 When recycled capital grant, plus notional interest, is repaid to Homes England the amount must be debited from the fund on the date of repayment.

5.10.7 Registered providers must email rcgf@homesengland.gov.uk if they intend to repay recycled capital grant before it has been held in the Recycled Capital Grant Fund for 3 years.

5.10.8 On a case-by-case basis, Homes England may allow registered providers to roll over their 3-year-old recycled capital grant balance into subsequent years. Homes England is prepared to consider cases where it believes this is in the interest of affordable housing provision, or results from an acknowledged error on the part of Homes England. To seek approval of a roll-over, email rcgf@homesengland.gov.uk to receive a business case template. Once submitted, the business case will be subject to Homes England’s approval.

5.10.9 Any agreement to rollover will be for only 1 year and subject to monitoring by Homes England’s monitoring. Homes England will inform registered providers of what details they should supply regarding the expenditure of the rolled over amount.

5.10.10 A further roll-over is unlikely to be approved unless there are exceptional circumstances and requires the registered provider to submit a new business case to Homes England.

5.11 How to identify 3-year-old capital grant

5.11.1 Registered providers must identify the amount of 3-year-old recycled capital grant repayable, if any, when preparing their Recycled Capital Grant Fund annual return.

5.11.2 The 3-year period starts from the end of the financial year (31 March) in which the recoverable capital grant was credited.

5.11.3 Example

5.11.3.1 The 3-year period should be calculated as:

£100,000 credited to the fund on 16 August 2019.

That is during the 2019 to 2020 financial year.

The 3-year period following the year of credit is therefore 2020 to 2023.

If not spent by 31 March 2023 it will become subject to repayment.

5.11.3.2 When calculating the amount of 3-year-old recycled capital grant that is repayable to Homes England, registered providers must calculate recycled capital grant as having been spent on a first in, first out basis.

5.11.4 Example

5.11.4.1 Operating on a first in, first out basis means that if by the end of the following third year, the registered provider has spent, in total, more than it deposited during the year in question, it has nothing to pay.

During the year ending 31 March 2019 £500,000 was credited to the registered provider’s fund.

The 3-year period is therefore 2020 to 2023.

In 2020 to 2021 the registered provider deposits £100,000 into the fund.

The total Recycled Capital Grant Fund balance is £600,000.

During 2020 to 2023 period £550,000 is spent

5.11.4.2 While there is balance of £50,000 there is no 3-year-old recycled capital grant as the £50,000 balance was from the 2020 to 2021 deposit.

5.11.4.3 If, by 31 March of the year in question, registered providers have entered a written contractual commitment to incur expenditure on permitted uses, then that amount of recycled capital grant can be treated as having been spent.

Only an exchange of contracts to acquire and signing a building contract are counted as contractual commitments.

5.11.4.4 Contracts devised to avoid repayment of 3-year-old recycled capital grant are not acceptable. Homes England expects contractual commitments to result in the contracted expenditure to be incurred within 6 months. On a building contract, that would mean signing building contracts and starting on site within 6 months.

5.11.4.5 Registered providers must not repay any outstanding 3-year-old recycled capital grant to Homes England until they receive an invoice as per 5.12.

5.11.4.6 Strategic partners have separate arrangements for aging their recycled funds on their Recycled Capital Grant Fund annual return. If the balance of the recycled capital grant is within the pre-approved amount in the strategic partnership, these funds do not need to be aged. However, any 3 years plus balance which is above the pre-approved amount should be aged as explained in this section. For further information on Strategic partnerships, refer to the Strategic Partnerships chapter.

5.12 Repayment process

5.12.1 Following a review of a registered provider’s Recycled Capital Grant Fund annual return Homes England will raise an invoice for:

any 3-year-old recycled capital grant (where a rollover request has not been approved)
the interest that the registered provider is required to calculate on that 3-year-old recycled capital grant up to 31 March of the year in question
interest that Homes England will calculate as due from 1 April to the date of the invoice

5.12.2 Homes England will issue the invoice as soon as possible after the end of year return has been submitted. Registered providers should not send a payment until they receive the invoice.

5.12.3 If payment arrives later than the date required by the invoice, Homes England will calculate and invoice for additional interest.

5.12.4 Where registered providers report sums over 3 years old, which Homes England has agreed to roll over beyond the usual deadline, no invoice will be raised for this amount.

6. Priority and Permitted uses

6.1 General

6.1.1 Recycled capital grant has the same contractual conditions as if the scheme had been funded with new Social Housing Assistance under the current programme.

6.1.2 Properties provided with recycled capital grant are not subject to Right to Acquire except when recycled capital grant is used in combination with new capital grant.

6.1.2 Priority uses

6.1.2.1 Homes England expects that, in the first instance, registered providers will spend recycled capital grant on Homes England’s priorities. Recycled capital grant may be spent on the following priority uses without the prior agreement of Homes England.

6.1.2.2 Homes England’s priorities for the reinvestment of recycled capital grant are:

the provision of newbuild dwellings for Shared Ownership, Rent to Buy, Affordable Rent and Social Rent - for more information on providing Affordable Rent properties with recycled capital grant refer to paragraph 6.3.1.
re-improvement or the physical conversion of existing owned larger properties into smaller properties that better suit local housing needs
downward staircasing where it will prevent repossession and homelessness provided the criteria in paragraph 6.1.3 are met

6.1.3 Downward staircasing

6.1.3.1 Downward staircasing is permitted only in cases where the shared owner is experiencing severe financial difficulties and other options for avoiding repossession have been exhausted. This cannot be applied to outright owners. It is not a means of allowing the shared owner to restructure their debts or otherwise improve their financial position. This includes to repay rent arrears.

Downward staircasing differs from the permitted use to repurchase a shared owner’s equity in shared ownership home. The latter can be used, for example, to support a registered provider’s asset management strategy and also address the challenges associated with building safety in capital grant funded and non-capital grant funded properties where the shared owner wishes to move on, but is unable to do so, refer to 6.2.2 (d) Permitted Use and 6.3.2 Equity Repurchase.

Recycled capital grant can be used to fund up to a maximum of 100% of the downward staircasing purchase costs.

6.1.3.2 There is no ‘right’ to downward staircasing and any offer is purely at the registered provider’s discretion. However, where offered by registered providers the following eligibility criteria must be met:

registered providers must confine offers of downward staircasing to shared owners in their own stock, however, this can include both capital grant-funded and non-capital grant-funded stock.
registered providers may set their own detailed procedures if they comply with the required general policy and procedures in this section of the Recovery chapter
the shared owner must be paying rent on the unsold equity in the property - the term ‘rent’ excludes ground rent and service charges.
downward staircasing is not available for other owner occupiers which includes former shared owners or those who have bought a property through a discount or incentive scheme such as Right to Acquire, Right to Buy, the Tenants’ Incentive Scheme (no longer available) or any of Homes England’s equity loan products
the shared owner must produce suitable evidence to prove their difficulty with mortgage repayments although they need not already be in mortgage arrears
the shared owners must be able to show that other options, such as loan rescheduling, or selling and moving to cheaper property within a reasonable distance to their current dwelling have been exhausted
registered providers must also consider the shared owner’s ongoing ability to meet future repair and maintenance liabilities
future sustainability should be based upon advice from an independent debt-counselling agency and should include consideration of housing benefit eligibility.
for Older Person’s Shared Ownership properties, downward staircasing repurchase from the maximum shares permitted under this product will also be permitted to allow essential repair and maintenance work to be carried out - the leaseholder must demonstrate that there is a need for such work to the property and that they lack the funds to pay for it
for properties not funded by capital grant, should registered providers consider repurchasing all the leaseholders shares thereby converting the tenure to an assured tenancy, they must undertake a survey of the property before completion of the downward staircasing application to assess any immediate and future repair liabilities that would be required under the Regulator of Social Housing’s standards

6.1.3.3 Under downward staircasing, registered providers must repurchase enough equity to reduce the leaseholder’s total housing costs to a level which both parties are confident is manageable.

6.1.3.4 This can include repurchasing sufficient equity to:

clear the mortgage
pay off arrears of interest and principal on the mortgage

6.1.3.5 In order to meet the needs set out in 6.1.3.4, the repurchase of shares by registered providers under Flexible Tenure is not restricted to defined tranches in the same way as for upward staircasing.

A repurchase of shares may also be to a level where the shared owner retains less than 25% for a home funded via the Shared Ownership and Affordable Homes Programme (SOAHP) 2016 to 2021 and less than 10% for a home funded via the Affordable Homes Programme 2021 to 2026.

Where registered providers are considering repurchases which will leave the shared owner with less than 25% or 10% ownership, they should discuss the implications with the shared owner. Registered providers should make clear that under the terms of the Shared Ownership lease the shared owner will still have full responsibility for any repairs.

6.1.3.6 There is also the option of full re-purchase, under which the shared owner becomes an assured tenant of the registered provider.

6.1.3.7 Providers should make details of their approach to, and policy on, downward staircasing available on their websites in a clear and accessible format. Even if it is to make clear that they do not operate such a policy. Providers must also ensure they retain any documentary evidence in support of their decision to use recycled capital grant to fund downward staircasing.

6.1.3.8 For any form of equity repurchase, the registered provider should ensure that any offer is acceptable to both the shared owner’s mortgage company, and its own lender. The latter may require a revolving credit facility.

6.1.3.9 As with upward staircasing, the amount payable by the landlord will be the appropriate percentage of the shares to be purchased according to an open market valuation completed by an independent RICS registered valuer.

The shared owner must pay for the valuation and their own legal fees. When these are initially paid by the registered provider, these costs may be deducted from the payment to the shared owner or the shared owner’s mortgage company allowing the registered provider to recoup the costs.

6.1.3.10 It will probably be a condition of the shared owner’s mortgage that the sale proceeds are paid direct to the first lender of the first mortgage. The registered provider’s solicitor should advise on this.

6.1.3.11 The amount to be debited should be drawn down from the Recycled Capital Grant Fund on the completion date of the legal transaction, and calculated as follows:

Debit from fund = (staircasing sales allowance) + (payment due for the shares to be purchased x percentage figure from Recycled Capital Grant Fund (up to 100%).

The current staircasing sales allowance should be used at the time of the sale.

The payment due to the shared owner or mortgagee must be the market value of the share to be repurchased.

6.1.3.12 The resulting amount of public subsidy (Housing Assistance Grant, Social Housing Grant or Social Housing Assistance plus Recycled Capital Grant) attributed to the property must include any deferred recovery of Housing Assistance Grant, Social Housing Grant or Social Housing Assistance in the same scheme.

6.1.3.13 The resulting deemed loan debt for the property will be the outstanding balance of the original deemed loan debt plus the new deemed loan debt attributable to the repurchased part of the property.

Worked example

A shared owner owns 75% of a house valued at £160,000, and staircases down to 25% ownership.

The staircasing sales allowance is (for illustrative purposes) £400.

The withdrawal from the Recycled Capital Grant Fund is (£400 staircasing allowance) + (£80,000 × 70%) = £56,400.

The registered provider has increased the Deemed Loan Debt on the property by the element of the payment to the leaseholder that was not funded by recycled capital grant. That is, £80,000 - £56,000 = £24,000.

6.1.3.14 Should the shared owner’s financial circumstances deteriorate even further, subsequent downward staircasing purchases are permitted to the extent of a complete repurchase of the property.

6.1.3.15 Where a shared owner benefits from downward staircasing to reduce their share to a lower level of equity, the terms of the existing lease will continue, including the right to staircase again.

6.1.3.16 Where a shared owner’s financial circumstances improve and they wish to purchase additional shares, then normal staircasing procedures should be followed. In these cases, registered providers must treat the recycled capital grant drawn down to fund the downward staircasing as if it were new capital grant. This includes following paragraph 2.5.4.13.5 to calculate the attributable capital grant recoverable for the staircasing sale and add this sum to any outstanding original funding for capital grant recovery purposes.

6.1.3.17 Whenever the shared owner benefits from downward staircasing or staircases again, the rent should be adjusted pro rata for the changed percentage rented and comply with all relevant rent policies.

6.1.3.18 Where a shared owner becomes an outright tenant the Shared Ownership lease must be formally terminated, and an assured tenancy agreement entered into on the same terms as for any other new tenancy agreement for rented housing let by that registered provider. It would be at the registered provider’s discretion whether to offer a Shared Ownership lease in the future.

6.1.3.19 An ex-shared owner who becomes an outright tenant will not be able to purchase the property under the Right to Acquire because the property was not originally provided with public money for the purposes of being a rented property. However, the assured tenancy would count towards future Right to Acquire residency criteria, refer to the Right to Acquire chapter, paragraph 2.2: Qualifying period for Right to Acquire. A tenant may be eligible for any discount or incentive scheme offered by the registered provider such as Social HomeBuy with any eligibility period starting from the date of this new tenancy.

6.2 Permitted uses

6.2.1 Expenditure on uses other than those listed in paragraph 6.1.2 requires prior approval from Homes England through written permission. However, these permitted uses will be subject to some restrictions or additional criteria as described in paragraph 6.3.

6.2.2 The permitted uses requiring the agency’s approval are:

a) The acquisition of land and housing stock that has not previously received capital grant funding,

b) To repurchase homes sold outright under Social HomeBuy post April 2006 where the freehold transfer includes a 21-year pre-emption right,

c) To repurchase properties sold under Right to Acquire or Right to Buy after 1 Jan 2005 (the Housing Act 2004 gives a ten year right to repurchase properties sold under Right to Acquire or Right to Buy).

d) To repurchase a shared owner’s equity in a capital grant funded Shared Ownership property. This can include the repurchase of properties affected by building safety challenges where the shared owner wishes to move on but is unable to do so because of issues associated with selling their home. Non-grant funded properties affected by building safety challenges where the shared owner wishes to move on but is unable to do so due to issues associated with selling their home, may also be repurchased using Recycled Capital Grant Fund. Refer to paragraph 6.3.2 for more information and also the Secretary of State for DLUHC’s (now MHCLG) 19th December 2023 letter to Shared Ownership providers.

e) To repurchase properties sold under Social HomeBuy or New Build HomeBuy post April 2006 on Shared Ownership terms, where the leaseholder has staircased to 100%,

f) Works to ensure compliance with the Fire Safety Act 2021.

g) Decarbonisation works or energy efficiency improvements

h) Other activities for which Homes England could make Social Housing Assistance available. This must not be for one of the restricted uses set out in paragraph 6.3.4.

6.2.3 A business case is required for all permitted uses. Email rcgf@homesengland.gov.uk to request a business case template. Business cases will be assessed and, if agreed, written approval given. Registered providers must not record amounts spent on permitted uses in their Recycled Capital Grant Fund annual return without first seeking approval.

6.2.4 When a relevant occurs on a property funded by:

the Next Steps Accommodation Programme
the Rough Sleepers Accommodation Programme
the Single Homelessness Accommodation Programme

Registered providers need permission from MHCLG to recycle funds from these programmes. Any recycled capital grant is restricted to use on homelessness provision approved by MHCLG.

6.2.5 For any further information or questions on permitted uses, email rcgf@homesengland.gov.uk.

6.3 Restrictions to and additional criteria for permitted uses

6.3.1 Affordable Rent

6.3.1.1 Registered providers that are not a party to a grant agreement and wish to charge an Affordable Rent on homes funded with recycled capital grant must enter a housing supply delivery agreement with Homes England before the homes are complete. Refer to the Housing for Rent chapter for more details.

6.3.2 Equity repurchase

6.3.2.1 Similar to downward staircasing, there is no ‘right’ to equity repurchase with any decision being at the registered provider’s own discretion. For example, to support their asset management strategy.

6.3.2.2 However, due to the role of equity repurchase in also addressing the challenges associated with building safety, registered providers should make details of any policies related to the repurchase of a shared owner’s equity available on their websites in a clear and accessible format. Even if it is to make clear that they do not operate such a policy.

6.3.2.3 Recycled capital grant can be used to fund up to 100% of the equity repurchase costs. Registered providers should ensure they retain any documentary evidence of their decision to use recycled capital grant to fund equity repurchase. This includes the open market valuation completed by an independent RICS Registered Valuer, which supports the amount paid to repurchase the property.

6.3.2.4 For properties not funded by capital grant, registered providers must undertake a survey of the property before completion in order to assess any immediate and future repair liabilities that would be required under the Regulator of Social Housing’s standards.

6.3.3 Section 106 homes

6.3.3.1 The AHP 2021 to 2026 funding guidance states that Homes England does not expect to fund section 106 homes with new capital grant. However, where funding can be vested into additional homes on section 106 restricted land, this may be accepted but would need the prior approval of Homes England. For guidance on applying for funding, visit Homes England’s Apply for affordable housing funding webpage. This restriction does not apply where recycled capital grant is to be used to repurchase properties affected by building safety challenges where the shared owner wishes to move on but is unable to do so because of issues associated with selling their home, refer to paragraph 6.3.2.

6.3.3.2 To help aid the decision-making process registered providers should submit evidence of their appraisal agreed with the relevant local authority on site viability. They should also demonstrate the additionality secured through the application of recycled capital grant as proposed.

6.3.4 Absolute restrictions

6.3.4.1 The following may not be funded with recycled capital grant:

Social HomeBuy or Right to Acquire discounts
major repairs
work to existing stock that is ineligible for funding because of the terms under which it was originally financed
day-to-day and cyclical maintenance
tenant incentive schemes
provision of equity loan products
leasehold enfranchisement

6.3.4.2 Registered providers must consult Homes England if unsure about a proposed use of recycled capital grant by emailing grant_notifications@homesengland.gov.uk.

6.4 Housing needs

6.4.1 Registered providers must apply the funds in their RCGF in accordance with the investment priorities stated in the relevant local plans or similar agreed documentation and expenditure is expected to be for the provision of new affordable housing.

6.5 Combining recycled capital grant with new capital grant and other finance

6.5.1 Registered providers may combine recycled capital grant with new capital grant in schemes receiving an allocation within the current funding programmes.

6.5.2 All schemes require a proportion of the costs to be met with private sector loans or a contribution from the registered provider’s own resources.

6.5.3 Resource inputs into a scheme from a registered provider’s RCGF must not exceed the level stated within the relevant bid, even if zero. Any proposal to add additional resources to an existing allocation must be agreed with Homes England in advance.

6.6 Land acquisition

6.6.1 Registered providers may use funds from their Recycled Capital Grant Fund to acquire land where the intention is to develop the additional supply of affordable housing.

6.6.2 Recycled capital grant may also be used to acquire land for market housing schemes which will include an affordable housing element. Recycled capital grant should be attributed pro-rata to any affordable housing subsequently developed and shown as an input of recycled capital grant at bidding stage if new affordable housing grant is also bid for to support the development of these houses.

If the land is acquired solely with recycled capital grant, registered providers do not have to submit a bid on the digital system but will need to show a withdrawal of funds on the Recycled Capital Grant Fund annual return.

6.6.3 Registered providers will be required to begin development on any land purchased with recycled capital grant within 5 years of purchase. If start on site has not progressed after 5 years registered providers will be required to pay back the recycled capital grant to Homes England, it cannot be re-credited back into the registered provider’s Recycled Capital Grant Fund.

7. Reporting and audit requirements

7.1 General

7.1.1 All registered providers that operate a Recycled Capital Grant Fund must report credits to and debits from the fund annually. The report must be completed by submitting a Recycled Capital Grant Fund Annual Return on Homes England’s digital system. It is the registered provider’s responsibility to ensure its return is submitted on time. The deadline for returns is 30 June of the year in question.

7.1.2 Registered providers that are subject to a grant agreement must also separately record units funded with recycled capital grant and no new capital grant through their annual Recycled Capital Grant Fund return to Homes England.

7.1.3 Registered providers must retain documentary evidence to support an audit trail for all transactions leading to recovery and recycling of capital grant. For further details, refer to paragraph 5.4.

7.2 Recycled Capital Grant Fund annual returns

7.2.1 Registered providers that operate inside and outside of Greater London should ensure that balances generated and reinvested in London are reported to the Greater London Authority and balances outside of London are reported to Homes England. This will require 2 separate returns.

7.2.2 All registered providers are required to submit an annual return if they undertook one or more of the following:

repaid any recycled capital grant from their Recycled Capital Grant Fund to Homes England during the year
credited their Recycled Capital Grant Fund with capital grant during the year, inclusive of capital grant recovered from a Relevant Event (refer to paragraph 2.5) or recycled capital grant transferred from another registered provider (refer to paragraph 5.9)
debited recycled capital grant from their Recycled Capital Grant Fund during the year to fund a priority or permitted use (refer to section 6)
had a balance remaining in their Recycled Capital Grant Fund at the end of the previous year (even though they have since been repaid, credited or debited their Recycled Capital Grant Fund during the year of the return)
completed a transfer of engagements during the year

7.2.3 Homes England may seek repayment of all, or part of balances held in a Recycled Capital Grant Fund if information is not supplied on schedule. This includes:

a failure to complete an annual end of year return on time or at all
not submitting Relevant Event notifications within the timescales required in section 3

In exceptional cases Homes England can determine that a registered provider is unable to operate a Recycled Capital Grant Fund.

7.3 Completion of the Recycled Capital Grant Fund annual return

7.3.1 Refer to Investment Management System: access, guidance and support for guidance on how to submit an annual return.

7.3.2 Queries relating to administration or submission of the Recycled Capital Grant Fund annual return, should be emailed to rcgf@homesengland.gov.uk.

7.4 Collection and administration of the Recycled Capital Grant Fund annual return

7.4.1 Registered providers who need to submit an end of year return will require access rights to the digital system.

7.4.2 Registered providers who do not have access to the digital system and require help should either:

refer to Register for, or make changes to, Investment Management System (IMS) accounts
call the Homes England service desk on 01908 353 604

For further advice on what information will be needed regarding access or end of year returns, including what to do regarding any previous end of year returns that may be due, registered providers should email rcgf@homesengland.gov.uk.

7.4.3 After reviewing the annual returns Homes England will contact the registered provider detailing any errors or adjustments required.

7.4.4 Having reviewed the annual returns Homes England will also consider requiring repayment of 3-year-old capital grant as per section 5 and will invoice registered providers accordingly.

7.5 Role of the external auditor

7.5.1 The Recycled Capital Grant Fund return is an integral part of a registered provider’s annual independent audit. Therefore, registered providers’ auditors must have regard to the disclosure of Recycled Capital Grant Fund balances and transactions and the overall accuracy of the annual return within their sign-off of a registered providers’ accounts (refer to paragraph 5.4).

7.5.2 Registered providers must keep a record of external auditors’ examinations of their Recycled Capital Grant Fund accounts. Any observations by the external auditor should be provided to both Homes England by emailing rcgf@homesengland.gov.uk and the Regulator of Social Housing.

Cookies on GOV.UK