Market Rent Policy

1. POLICY PURPOSE

1.1 In addition to the provision and management of low cost rental accommodation (as defined in the Housing and Regeneration Act 2008) properties, One Manchester owns and manages a number of properties that are let as ‘Market Rent’. Market rents are determined via an independent assessment of comparable properties in terms of size, condition and area in accordance with the Royal Institute of Chartered Surveyors (RICS) methodology and reassessed in line with market conditions.

1.2 Through the delivery of market rented properties and in conjunction with its various social housing and home ownership products and services, One Manchester aims to promote the creation of sustainable communities with a mixture of tenure types and accessible housing choices. Market rent is a commercial tenure managed by One Manchester to create a profit to reinvest in its social rent activities (its core charitable purpose).

2. POLICY SCOPE

2.1 The policy sets out the provisions One Manchester has in place for the allocation and management of market rent properties, the services it will offer to tenants in these circumstances and the tenant’s rights and responsibilities.

3. RELEVANT LEGISLATION & REGULATION

3.1 This policy has been written in accordance with relevant guidance and legislation, which includes:

• Housing Act 1988;
• Housing Act 2004;
• The Localism Act 2011;
• Manchester City Council’s Tenancy Strategy 2012;
• Immigration Act 2014;
• Tenant Fees Act 2019
• Renters’ Rights Act 2025;
• Assured Tenancies (Private Rented Sector) (Written Statement of Terms etc and Information Sheet) (England) Regulations 2026

4. POLICY STATEMENT

4.1 This policy sets out our approach to offering and managing market rent tenancies, including How a tenancy can be ended.

4.2 Following the introduction of the Renters’ Rights Act 2026. All existing market rent tenancies as of 1 May 2026 have automatically converted into an assured periodic tenancy (unless the transitional provisions in the Act apply, in which case the tenancy continues as an Assured Shorthold Tenancy (AST) for such time as specified in the Act); and
All new market rent tenancies as of 1 May 2026 will be assured periodic tenancies.

4.3 The rent charged is a market rent.

4.4 The tenancies continue on a rolling month-by-month basis until terminated by either One Manchester or the tenant.

4.5 The Regulator of Social Housing’s Consumer Standards and Rent Standard do not apply to the operation of market rent tenancies.

5. THE POLICY

5.1 Tenancies

5.1.1 As set out in paragraph 4.2 above, market rent tenancies are assured tenancies (subject to some transitional protections under the Renters’ Rights Act 2025); they are not social tenancies and as such are not entitled to some rights that may be available to social tenants, such as ‘preserved right to buy’ or the ‘right to acquire’. Also, they may not necessarily be offered the same One Manchester services available to social rent tenants.

5.1.2 Market Rent tenants do not have the right to:

• Take in lodgers (however they can request this formally and this may be agreed by One Manchester);
• To exchange their tenancy;
• To carry out improvements/alterations;
• Acquire the property;
• Sublet the whole of the property;
• Sublet any part of the property (however they can request this formally and this may be agreed by One Manchester).

5.1.3 The monthly periods start from the first day of the tenancy: e.g. if the first day of the tenancy is 15th June, the monthly periods run from the 16th day of the month. This is important for rent setting as the date of rent increase must be from the day after its start date, in this example 16th day of the relevant month for that particular tenant.

5.1.4 For Market Rent Tenancies we will:

• Advertise vacant properties either via a web based lettings portal or via a local lettings agent. We will usually let properties on a ‘first come – first serve basis to qualifying applicants (see below).
• Provide protection of the tenancy deposit within the Deposit Protection Service (the “DPS”).
• Conduct a post-tenancy visit within 6 weeks of the start of the tenancy and then annually unless further visits are deemed appropriate by One Manchester. 
• Provide information, advice and guidance in relation to how to conduct and maintain the tenancy.
• Consider any request for a pet in accordance with section 16A of the Housing Act 1988.
• If OM wishes to end a market rent tenancy it will do so by serving a notice under section 8 of the Housing Act 1988 seeking possession based on one or more of the grounds for possession as set out in Schedule 2 of the Housing Act 1988. All reasonable attempts will be made by OM to remedy any breach of tenancy prior to serving the section 8 notice. A possession order must be obtained (unless tenant has vacated the property and returned the keys to One Manchester pursuant to a notice) and (if required) execute the possession order.
• If a tenancy has ceased to be an assured tenancy, we may end the tenancy by serving notice to quit.
• OM will review the rent charge on an annual basis in accordance with section 13 of the Housing Act 1988. Market rent tenants will be informed in writing with at least two months’ notice of any changes using the prescribed Form 4A .
• Depending on the local market and subject to demand, One Manchester may reduce the rent on vacant properties. Where it does the properties remain classified as market rent properties: they do not become low cost rental accommodation because the accommodation is let on open market principles and not in accordance with rules designed to ensure that it is made available to people whose needs are not adequately served by the commercial housing market.
• Arrears recovery will be robust in line with a commercial approach

5.2 Pre-Tenancy Check

5.2.1 Before being accepted for a market rented property One Manchester will seek references from either a current or former landlord and will seek assurances that the prospective tenants can afford the rent and all associated charges via a credit check. We will also undertake identity checks, right to rent checks on all adults and fulfil anti-money-laundering obligations.

5.2.2 The purpose of the pre-tenancy checks, in particular the affordability and credit check, is to ensure we have a full financial and suitability assessment for a prospective tenant. This will assist us in providing the most appropriate support to the new tenant from the start of the tenancy to make it sustainable for the future.

5.2.3 If during the pre-tenancy checks a prospective customer discloses a vulnerability and/or need for reasonable adjustments to be made. One Manchester will ensure that the customers’ individual circumstances are considered and relevant reasonable adjustments implemented.

5.2.4 On a discretionary basis, and where there are no further suitable applicants available, One Manchester may allow lettings to individuals with unsatisfactory credit checks where affordability can be supported by documentary evidence and a guarantor.

5.3 Pre-Tenancy Documentation

5.3.1 Before entering into a tenancy agreement, OM will ensure it has served on the prospective tenants:

• The How to Rent Guide (available at): Please see link below.
• Right to rent document checks: a user guide - GOV.UK
• Copies of gas safety check, electrical check and EPC. 
• Written statement of Terms

5.4 Deposit

5.4.1 Applicants who wish to rent a One Manchester market rent property are required to pay before signing-up for the property a deposit equivalent to no more than the maximum number of weeks rent allowed by legislation (5 weeks if annual rent if less than £50,000 or 6 weeks if annual rent is £50,000 or more). One Manchester is registered with the Government-backed Deposit Protection Scheme which ensures the tenant’s deposit is held securely and independently for the duration of the tenancy. One Manchester will register the deposit with the Deposit Protection Scheme and provide the tenant (and any relevant person, i.e. a person who pays the deposit on behalf of the tenant) with the prescribed information within 30 days of receipt of the deposit.

5.4.2 On termination of the tenancy, the deposit is repayable to the outgoing tenant, less any costs owed to One Manchester in respect of any breaches of the tenancy including the cost of any enforcement action taken i.e. court applications in accordance with the DPS rules and permitted deductions.

5.4.3 On termination of the tenancy, tenants will be required to complete a “checking out” appointment with One Manchester. This will enable One Manchester and the customer to review the condition of the property against the inventory “check in” completed on the day their tenancy commenced. Any damage outside of reasonable wear and tear is repayable from the tenants deposit.

5.5 End of Tenancy

5.5.1 The tenant may end the tenancy agreement at any time by giving at least two months’ notice. If it is joint tenancy, only one tenant need give notice to end the tenancy.

5.5.2 Where a joint tenant gives notice to end the tenancy and the other tenant wishes to remain in the property, One Manchester may consider creating a new tenancy for the remaining sole tenant, this will be subject to affordability of paying rent individually and in accordance with the tenancy terms and a deposit (5 weeks if annual rent if less than £50,000 or 6 weeks if annual rent is £50,000 or more) (the original deposit to be returned on the end of the initial
tenancy).

5.5.3 All terms of the tenancy agreement are expected to be adhered to throughout the tenancy, including all provisions about the end of the tenancy (e.g. about the condition of the property at the end of the tenancy).

5.5.4 At the end of the tenancy, any deposit will be returned to the tenant within 10 days of One Manchester and the tenant agree the amount to be returned subject to the terms of the Deposit Protection Scheme and the tenancy agreement.

5.5.5 Where the amount of deposit deductions is in dispute and agreement cannot be reached, both parties can consent to the Deposit Protection Scheme enacting an Alternative Dispute Resolution (ADR) process and adjudication will be made based on evidence submitted by each parties. If either party refuses to consent to this process the DPS will only release the deposit on an instruction from the courts.

6. METHOD AND APPROACH

6.1 One Manchester aims to offer a professional and cost-effective service taking into consideration the provisions of the market rent tenancy agreement and legislation.

7. RESPONSIBILITIES

7.1 The Assistant Director of Income and Allocations will be responsible for ensuring this policy complies with legislative requirements.

7.2 Managers and Staff who deal with the allocation and tenancy management of properties are responsible for monitoring the implementation of this policy.

8. EQUALITY, DIVERSITY AND INCLUSION STATEMENT

8.1 One Manchester promotes a diverse and inclusive environment for our customers and colleagues to thrive. We are committed to enhancing a culture that respects individuals, appreciates difference and allows everyone regardless of background to reach their full potential.

8.2 We accept our responsibility to comply with equalities legislation and regulatory requirements and aim to do more. We believe everyone requires access to the same opportunities. Through our behaviours, we aim to challenge and remove systemic barriers to equal opportunities and reduce the likelihood of all forms of discrimination, harassment, and victimisation within our organisation and our communities.

8.3 We are committed to providing excellent customer services, which are fair, equitable and inclusive. As such, we will endeavor to understand and make any reasonable adjustments required for customers in line with One Manchester’s Reasonable Adjustment Statement, and Reasonable Adjustment Policy and the Equality Act 2010.

9. EQUALITY IMPACT ASSESSMENT

9.1 An Equality Impact Assessment (EIA) has been completed and assessed.

9.2 The EQIA has highlighted areas where characteristics could potentially be affected, however, ensuring applications are assessed on a case-by-case basis allows for characteristics to be protected.

9.3 Market rent tenancies do not have the same ‘protective’ elements of a typical social housing tenancy, but One Manchester are dedicated to preserving inclusion.

10. MONITORING AND REVIEW

10.1 Compliance with this policy shall be monitored by the Assistant Director of Income and Allocations.

10.2 This policy shall be reviewed every 3 years or if further government changes impact this policy.

10.3 The Assistant Director of Income and Allocations is responsible for interpreting this policy where the provisions are unclear or there is ambiguity. Any interpretation will automatically become incorporated into the policy.

10.4 The Officer or Officers operating the policy in practice are responsible for implementing the policy and interpreting the policy giving the words of the policy their common everyday meaning.

11. ASSOCIATED POLICIES AND DOCUMENTS

12.1 Internal Documents:

• Tenancy Management Policy
• Income and Debt Recovery Policy
• Write Off Policy
• Safeguarding Adults Policy
• Inclusive Access Strategy
• Reasonable Adjustment Policy
• Anti-Social Behaviour and Hate Crime Policy
• Complaints Policy
• Rent and Service Charge policy
• Anti money laundering policy
• Data Protection Policy

12.2 External Documents:

• Right to rent guidance – Gov.uk