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Private Sector Leasing

Sunderland City Council is pleased to offer a Private Sector Leasing scheme to property owners within the city. Please look at the information below and get in touch if you are interested.

The basics

Private Sector Leasing (PSL) gives the property owner the option to lease their property to the council for a fixed period and the council will then manage the property as part of the Council Housing Service.

At the end of the lease, the property will be returned to the landlord with fair wear and tear. The landlord would only by responsible for general maintenance as the council would cover any tenant damage. A guaranteed monthly payment would be received by the landlord for as long as the lease was in place.

What are the advantages of PSL?

  • You get a guaranteed income
  • You don't have any housing management, rent collection or deposit management
  • We include a budget for annual safety checks and some minor works
  • We source and manage the tenant, covering any tenant damage

What are we looking for?

We are looking for properties that we can let to people on our housing register. Demand varies throughout the city so there may be locations that from time to time we wouldn't agree to a lease depending on how many we have leased in each area, any regeneration activity and the demand at the time.

Properties that would normally achieve Local Housing Allowance rates are of real interest. We have a need for one, two and three bedroom houses, flats and bungalows. The property will need to be of a decent standard with no Category 1 hazards.

The property doesn't have to have been let before, but we must be able to take a lease with vacant possession so if you have an existing tenant then we are unlikely to be able to complete a lease unless the tenant intends to move out.

Required standard

The property needs to meet our Accreditation and Decent Home Standard, and we would lease for a period of up to five years. During this time, you would get a guaranteed income each month, even during any void periods.

We will give the property back to you at the end of the lease with fair wear and tear. If the tenant damages the property, then we will put this right. We will cover all bills, voids and rent loss during the lease term ensuring that gas and electrical safety certificates are maintained throughout the term of the lease. As the property owner you will be responsible for general repairs and maintenance.

For example, we will complete annual CP12 and boiler servicing but if there is a boiler fault then this would be up to you to resolve. You should ensure that the property has appropriate buildings insurance and that our interest is noted with your insurer and mortgage provider, if you have a loan secured against the property. Full details will be contained within the lease.

How much will you get paid?

We will base our rental assessment on the Local Housing Allowance rates. A monthly management fee will be deducted, and our own costs will be covered including the annual cost of gas safety checks and servicing up to £400, but not repairs and maintenance.

If you approve us to complete any works on your behalf the cost would be deducted from your next monthly income.

An example of standard PSL expected income:

Property Type

LHA Rate per month

Lease payment to owner

2 bed house

£433.33

£331.15

3 bed house

£493.65

£377.65


What the next steps?

Please complete the online application form and we will contact you to arrange an inspection of your property. We will then assess if your property is suitable for Private Sector Leasing

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