Ms Lyndsey Anderson:

We acknowledge that the cost-rental charges are still quite high. When it comes to comparing against the private market in the area, we have found, and recently published researched noted, that, although similarly sized properties in similar locations are being compared, they are not always like for like. The cost-rental property is high-standard accommodation with a secure tenancy and a professional landlord. These advantages set the tenure apart, but there is an acknowledgment from the sector that the rents remain high. It is predominantly down to how the cost is calculated. The cost in cost rental is calculated based on the development, capital, acquisition and financing costs, including debt finance costs and interest charges. There are also management and maintenance costs, which are projected over the lifetime of the unit as opposed to just the daily management and maintenance costs. The rents are expensive and the cost of delivery is high, but the product is high quality. The household’s expenditure on rent remains high – we do not dispute that – but the private sector accommodation that the household came from or would otherwise have chosen would not be of the same quality or security. People are in A-rated homes, so while their rent charges are high, they may save on other expenditure items.