Rent Policy Review

Castlehill Housing Trust

Aberdeenshire, Moray, Aberdeen

Consultancy brief

Rent policy review

Castlehill Housing Trust (CHT) is seeking to appoint suitable qualified and experienced consultants to carry out a review of its rent policy.  

Background

CHT is a private charitable landlord and a subsidiary company of Castlehill HA based in the northeast of Scotland. Our housing is primarily for adults with learning differences, it comprises of registered care homes, HMOs and individual tenancies. We have eighty-four properties and currently one hundred and eight tenancies. Most of our shared living properties comprise of communal areas such as living room/kitchen/bathrooms and their own bedroom. In our shared living properties, a Care Provider (commissioned by the local health and social care partnership) provides 24/7 care and support.   

The scope of this review relates to our rent policy which was last reviewed in 2024 (copy attached) following on from a wholescale review incorporating a new points system in 2018/2019. Prior to this, rents had been set by the three individual housing associations who managed the stock so there was no robust and accountable method. The current policy uses a points-based system, firstly providing points according to type and size of property then various additional attributes. CHT is quite unique in terms of what we own and therefore it has not been possible to benchmark our rents against other similar landlords to ensure our customers are receiving value for money. We are subject to local housing allowance (LHA), this is proving problematic as they are taking the “average” of private rents in a particular council then using the 30th percentile of market rents for the bedroom type. Our stock portfolio and mixed property type is not replicable of an “average” private landlord due to the enhanced housing management service we provide.

CHT’s service charges system was designed to be responsive and to reflect actual costs. However, the complex nature of charges particularly across the different properties has meant that the administration of these charges can be time-consuming, and transparency can be challenging where the charges are complex. The service charges are generally for communal utilities (i.e. electric lighting in communal hallways / stairwells) and laundry equipment (tumble dryers/washing machines the majority of which are commercial appliances which can cost circa £3000 to renew) and disabled equipment like tracking ceiling hoists/hi-lo specialist baths.

Outline scope of the project

CHT’s principal requirement is the provision of consultancy service to undertake a comprehensive review of its rent policy. In Aberdeen City and Aberdeenshire for housing benefit purposes rents are set against Local Housing Allowance (LHA) rates, as we are no longer classed as exempt supported accommodation. However, both authorities currently assess bedroom size differently for shared living. For instance, Aberdeenshire Council assesses as a 2-room rate where you have your own bedroom but shared communal facilities where there is 24/7 support (not provided / paid for by CHT) whereas Aberdeen City would class this as a shared room rate thereby a difference of £325.02 per month. Discretionary Housing Payment is often awarded for those tenants where LHA Moray Council still classes our accommodation as supported, so there are no restrictions on eligible rents and services although we are acutely aware that this can change at any time.

Role and remit of the consultant

The scope of this review relates to our rent policy which was last reviewed in 2018. Service charges are covered in the current rent policy but given the complexity of the charges levied by CHT, the work includes a requirement to draft a comprehensive set of principles for service charges to be appended to or included in the policy.

The review should include, but is not limited to:

    • Analysis of the current rent policy and points system structure (sensitivity analysis attached)
    • Review of affordability of CHT’s current rents
    • Generation of costed options for proposed rent structure that addresses affordability and an equitable approach across all properties while maintaining income levels required to sustain our business plan.
    • Review of service charging practice and recommendations for and drafting of a comprehensive set of service charges principles to be appended to/included in the revised policy.
    • Conclusion and recommendations on the option which provides best value for money for CHT tenants, and proposal for implementation where individual rents must be adjusted.

It is for the consultant to determine the methodology to be deployed, but it is anticipated the approach will include data analysis, review of good practice and interviews with CHA Senior Management Team and CHT Manager and finance personnel. 

Outputs and timescales 

The consultant should provide a final report which sets out findings from the review including analysis of data, and costed options for a revised policy. It should make recommendations on implementation, particularly in relation to introducing the revised rent/services policy itself and on how we undertake future rent/service review consultations after the new policy is implemented. 

It is expected that there will be an inception meeting, at least one interim meeting with CHT during the review and one draft final report meeting before the final report is issued. 

Consultants will be required to provide a presentation to the CHT board on the key findings and recommendations of the review. 

The following timescales are anticipated: 

Advertisement: 20 August 2026 
Return of tenders: 17 September 2026

Interviews from shortlist (via Teams): w/b 5TH October 2026 (TBC)
Appointment of consultant: 19th October 2026
Final report submitted: TBC
Presentation to CHT Board: TBC 

Submission of proposals

The proposal should contain:

    • A brief description of your organisation.
    • A description of methodology as to how you will approach the task and achieve delivery of the required outputs.
    • A programme of work that will see the outputs delivered within the required timescale.
    • An indication of how the project will be resourced, giving details of which consultants will be providing the service for the proposed programme of work, and giving details of their skills and experience.
    • Evidence of relevant professional skills and experience, and a track record of tackling comparable assignments.
    • Details of your total costs for undertaking the work, including VAT and expenses. This contract will be based on a fixed contract sum, based on the contractor’s proposed costs submitted.
    • Details of any terms of business which you will want to see agreed as part of the commission
    • Details of two references/referees.
    • Proposals should be submitted by email to Emma Ozanne, Castlehill Housing Trust Manager at emma.ozanne@castlehillha.co.uk. Emails should be entitled as “Confidential, Rent Policy Review Tender” in the subject heading. The deadline for submissions is 5pm Friday 25th September 2026.

Evaluation of proposals

The selection will be made based on an assessment of your proposal and interview outcome, and cost, quality and deliverability. A 60% / 40% quality / cost ratio will be applied.

All proposals will be acknowledged by email, and all bidders will be informed of the outcome of the procurement exercise.