Surplus rental income rules HA 1988 s. 55
HA 1988 s.55: housing associations must use surplus rental income to reduce grants or pay to Secretary of State, affecting grant recovery.
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Text in force at .
Source: legislation.gov.uk — The National Archives (legislation.gov.uk), reproduced under licence Open Government Licence v3.0.
What it actually says
Surplus rental income is the amount by which a housing association's rental income exceeds its costs for managing and maintaining the properties, including loan charges. This section requires that surplus to be applied to reduce any grant payable under Part II of the Act. If no grant is payable, the surplus must be paid to the Secretary of State.
Housing associations cannot retain surplus rental income for other purposes unless the Secretary of State directs otherwise. The provision ties directly to the grant regime under sections 50-54, and affects how grants are calculated and recovered.
When it applies
- A housing association's rental income exceeds its costs for the year and it wants to use the surplus for new development projects.
- A local authority is calculating the amount of grant to pay to a housing association and deducts its surplus rental income.
- A housing association reports a surplus and the Secretary of State demands that it be paid over instead of being reinvested.
- An auditor checks whether a housing association has properly applied its surplus rental income to reduce grants.
- A housing association disputes with the regulator whether certain items count as costs when determining surplus rental income.
What this section does not say
- Does not govern how rent levels are set for assured tenancies (see ha1988s.4a, ha1988s.6).
- Does not apply to private landlords or local authorities directly (only housing associations).
- Does not determine tax treatment of surplus rental income (see ha1988s.54 tax relief grants).
- Does not set the conditions for revenue deficit grants (see ha1988s.51).
Related sections
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This page reproduces the text of HA 1988 s. 55 in force at the date shown and explains it in general terms. It is not legal advice and takes no account of the circumstances of your case, which can change the answer completely. For a live dispute, for limitation periods, and before taking any step in court, consult a qualified lawyer in England and Wales.