Mid-Market Rent Eligibility Criteria

20 July 2023

The Scottish Government has published their new More Homes Division Guidance Note MHDGN 2023-01 and this contains new guidance regarding the eligibility criteria for MMR properties. The rules governing eligibility for MMR applicants are detailed in Annex D on Target Tenant Group:

‘Mid-market rent is aimed at assisting people on low and modest incomes to access affordable rented accommodation and helps those who have difficulty accessing social rented housing, buying their own home, or renting privately on the open market. It is important however that prospective tenants are assessed on their ability to afford and sustain a tenancy, not just on their ability to meet specific income levels, and that they are not discriminated against because of the source of that income (for example, through a work or state pension or social security contributions). Income criteria will be based upon figures in the local authority’s Local Housing Strategy, Affordable Housing Policy, or as otherwise agreed between individual local authorities and the relevant grant provider. Projects aimed at higher income groups are ineligible for funding’.

The network has clarified the Scottish Governments position and confirmed the following:

Note in particular that the criteria in the current guidance talks about the affordability for the prospective tenant without discrimination on where the income comes from or what level that income is at. This means that those on benefits or a pension have the same rights as those who receive their income from employment. RSLs cannot stipulate that MMR applicants are in employment or the source of that income.

Therefore the requirement for applicants to be in employment in any housing advertisements should be removed in line with the Guidance and information above.

If you have any further questions please contact trudi.tokarczyk@scotlandshousingnetwork.org.