The Exempt Accommodation Framework
A regulatory structure that unlocks enhanced housing payments for qualifying HMO properties. You remain the operator. You keep 100% of net income.
What is Exempt Accommodation?
Exempt Accommodation is a category of supported housing recognised by the Department for Work and Pensions (DWP). It provides accommodation for individuals who require additional support to sustain their tenancies.
The key regulatory feature is that Universal Credit housing payments for tenants in Exempt Accommodation are not subject to Local Housing Allowance (LHA) caps. This means the housing element can be set at rates that reflect the cost of providing supported accommodation, rather than being limited to standard benefit rates.
For qualifying properties, this regulatory status unlocks significantly higher rental income than standard private letting, with payments made by the DWP rather than depending on individual tenant affordability.
The Letora framework enables your property to achieve Exempt Accommodation status while you retain operational control as the landlord.
What This Status Means for Landlords
Exempt Accommodation status provides several regulatory advantages that translate into tangible benefits for property owners.
Exempt from LHA Caps
Standard housing benefit is limited by Local Housing Allowance rates, which often fall below market rents. Exempt Accommodation removes this cap entirely, allowing enhanced rates that reflect the cost of supported housing provision. This is the primary source of higher income under this framework.
Government-Backed Payments
Housing payments are made via Universal Credit, funded by the DWP. Once a tenant is correctly placed, the housing element is stable and not arbitrarily withdrawn. This provides more payment reliability than depending on individual tenant affordability.
Potential HMO Licensing Exemption
Properties operating as Exempt Accommodation may be exempt from mandatory HMO licensing requirements in certain circumstances. This depends on the specific arrangement and must be assessed on a case-by-case basis for each property and licensing authority.
Potential Planning Exemptions
Exempt Accommodation may fall outside certain planning use class restrictions that apply to standard HMOs. As with licensing, this depends on the specific property and planning authority. We assess these factors during the suitability review.
Exemptions from licensing and planning requirements are not automatic and depend on specific circumstances. We provide guidance during onboarding but recommend independent verification with relevant authorities.
How You Access Exempt Accommodation Status
Achieving Exempt Accommodation status requires a specific regulatory structure. The Letora framework provides this structure while allowing you to remain in operational control of your property.
The Framework Structure
For the enhanced housing element to apply, the framework entity must appear on tenant documentation. This is a regulatory requirement, not a change in your ownership or operational role. You remain the landlord and operator; the framework provides the compliance structure that enables the exemption.
Compliant Documentation
You use tenancy documentation provided by the framework. This documentation is structured to meet Exempt Accommodation requirements and ensures the regulatory status applies correctly. The framework entity appears as the provider on tenant paperwork.
Payment Processing
Universal Credit housing payments are collected by the framework and distributed to you after deducting the framework fee. This provides a single, consolidated payment stream rather than collecting from individual tenants separately.
Tenant Referrals
The framework provides tenant referral pathways from supported housing networks. You can accept or refuse referrals at your discretion. You may also self-source tenants who meet eligibility criteria for the framework.
The Service Level Agreement
Your relationship with the Letora framework is governed by a Service Level Agreement (SLA). This is a service contract, not a tenancy or lease arrangement.
What the SLA Covers
- •Framework fee structure and payment terms
- •Property compliance standards you must maintain
- •Your responsibilities as the operator
- •Services the framework provides (documentation, payment processing, referrals)
- •Inspection requirements and reporting obligations
- •Termination conditions and notice periods
What the SLA Is Not
The SLA is not a tenancy agreement. You do not lease your property to the framework. You do not grant exclusive possession. You remain the legal owner and day-to-day operator of your property. The framework is a service provider, not a tenant.
Your Ongoing Control
You retain control over property management decisions, maintenance arrangements, and tenant acceptance. The framework provides regulatory infrastructure and payment processing; operational decisions remain with you.
Income Potential
Income under this framework is based on enhanced Universal Credit housing element rates. After framework deductions, indicative net income is approximately:
~£200 – £261 per room per week
Net to you after framework deductions
Standard claimants: Approximately £200 per room per week for single adult Universal Credit claimants.
Enhanced claimants: Approximately £231-261 per room per week for claimants receiving PIP, Limited Capability for Work, Working Tax Credit, or Carer payments.
Figures are indicative and vary by area. Actual income depends on occupancy levels and your operational management. Void risk remains with you.
Estimate Your Property's Income
Use this calculator to see indicative figures for your specific property based on room count and your operating costs.
Your Responsibilities as Operator
This framework requires hands-on involvement from you. You are not leasing your property to a management company. You remain the operator with full responsibility for property management.
You Are Responsible For
- •General maintenance and repairs
- •Day-to-day tenant issues and queries
- •Behavioural management and house rules
- •Property compliance within framework standards
- •Void periods when rooms are empty
- •Tenant acceptance decisions
If you are seeking someone else to manage your property entirely, this framework is not designed for that purpose. It suits landlords who are already comfortable with HMO management and want access to higher yields through a regulated structure.
Submit Your Property
The first step is a property suitability assessment. Submit your details and we will review whether your property qualifies for the framework. You will receive a response within 2 working days.
Frequently Asked Questions
Common questions about the Exempt Accommodation framework.
Is this a rent guarantee arrangement?
No. Your income depends on occupancy. If rooms are empty, you receive no income for those rooms. The framework provides access to enhanced rates and government-backed payments, but void risk remains with you.
Do I lose control of my property?
No. You remain the legal owner and day-to-day operator. The framework provides regulatory infrastructure via a Service Level Agreement, not a tenancy. You make operational decisions, handle maintenance, and manage tenants.
How are the enhanced rates possible?
Exempt Accommodation is exempt from Local Housing Allowance caps. The Universal Credit housing element can be set at rates that reflect the cost of supported accommodation, rather than being limited to standard benefit caps that apply to ordinary private lets.
What types of tenants occupy these properties?
Tenants are individuals who qualify for Exempt Accommodation, typically those who require additional support to sustain a tenancy. This includes people transitioning from homelessness, those with support needs, and others referred through supported housing networks.
What happens if a tenant causes problems?
You handle behavioural management as the operator. If a tenant breaches conditions or fails to sustain their tenancy, there is a defined process for removal. Replacement timing depends on demand in your area.
How long does it take to get started?
Properties that meet standard requirements can be operational within 21-28 days of initial assessment. This includes compliance checks, documentation setup, and initial tenant placement.
What are the framework fees?
Framework fees are deducted from gross income before distribution to you. The specific fee structure is provided during the suitability assessment. After deductions, you receive 100% of the remaining net income.
For more detailed information, visit our full FAQ page or book a consultation call.
Learn More
Explore these pages for more detail on specific aspects of how the framework operates.
Important Information
This page provides general information about the Exempt Accommodation framework. Individual circumstances vary and all arrangements are subject to property assessment and agreement of terms.
Income figures are indicative and vary by area and claimant type. Actual results depend on occupancy and your operational management. Void risk remains with the operator. This is not an income assurance arrangement.
Potential exemptions from HMO licensing and planning requirements depend on specific circumstances and must be verified with relevant authorities. The framework does not provide legal advice on these matters.
All arrangements are documented through a formal Service Level Agreement. You should seek independent legal and financial advice before joining the framework.