Intermediate Market Rent Frequently Asked Questions

Supporting our Customers

Our Lettings Team are on hand to assist customers throughout their Intermediate Market Rent (IMR) journey, from initial viewings right through to the handover of keys, helping them to find the right home based on their individual circumstances. We are available to talk through any questions or queries customers may have at any point in the process. If you would like to speak to a member of our Lettings Team – contact us on: 02081890428

Learn more about what IMR is here. 

Frequently asked questions about Intermediate Market Rent:

About IMR

We have IMR homes across London, Cambridge, Chelmsford and Colchester. Search for IMR properties here.

IMR rents are set at 20% less than compared to renting a similar property in the area privately.

No, your rent will not increase during your fixed term tenancy. Two months before your tenancy is due to end, your dedicated property manager will contact you to discuss the new rental value which will be valued at 20% less than compared to renting a similar property in the area privately.

Tenancy and Property Information

IMR homes cannot be purchased. If you are ready to purchase your first home at the end of your tenancy, L&Q have a variety of homes here.

Our IMR properties have a 12 month minimum tenancy.

Yes, our IMR properties have a 6-month break clause.

No, all terms and clauses in the tenancy agreement cannot be amended. You will be given a draft tenancy agreement to review before signing.

This is dependant on the property. We recommend that you check with your Lettings Associate who will advise you accordingly. If gas is in the property you will be provided with a gas safety certificate.

Unless your home is allocated a parking space, due to local authority restrictions, you will be unable to apply for a resident parking permit for local street/CPZ parking. L&Q cannot take responsibility for vehicles parked incorrectly. The local authority or another parking control management service may apply parking restrictions on our estate or on the surrounding roads. It is your responsibility to check before you park to avoid fines.

Pets may be permitted with prior written consent. If approved, you will be required to complete a Pet Registration form before moving into your property. Please discuss this with your Lettings Associate who can advise you.

Rent, Bills, Savings and Deposits

The rental price does not include utility costs, those are the tenants responsibility.

No, L&Q do not determine a fixed monthly saving as part of the IMR tenancy. IMR is a stepping stone to homeownership so it is recommended that the savings that you make from the discounted rent is put towards the deposit for your first home.

Savings are defined as all available funds across all household accounts. This may include banking accounts, building society, savings accounts, bonds, ISAs and investments.

Your security deposit will be registered and protected by the Tenancy Deposit Scheme (TDS).

You will be contacted by your Property Manager and negotiations surrounding the release of your security deposit within 10 working days of your tenancy end date.

Application Process

All household members aged 18 or over must be included as an applicant within the application. The primary applicant will remain the main point of contact throughout the process.

Yes. If you declare that you are married, your spouse must be listed as a second applicant on the application.

Please email the team via: IMRApplications@lqgroup.org.uk.

IMR Financial Qualification Assessment – FAQs

Affordability Assessment

Our assessments are carried out to ensure all tenants meet the Intermediate Market Rent eligibility criteria, which are:

  • Be able to provide one month’s rent in advance and five weeks’ rent as a tenancy deposit
  • Meet the minimum income and affordability standards – this will depend on the price of the home you are interested in
  • Minimum income requirements should be used as a guide and can vary depending on a household’s circumstances and financial commitments
  • Be able to afford 80% of the local market rent without assistance

All household members aged 18 or above will be required to provide documentation to enable an assessment of eligibility and affordability.

Minimum income requirements should be used as a guide and can vary depending on a household’s individual circumstances. The minimum income is provided on the basis that alongside your monthly rent, you will have no other financial commitments apart from living expenses.

Salary deductions or financial commitments; for example, credit cards or loans, will be factored into your affordability assessment and may impact the minimum income requirement for your household. This means that in some instances, although you may meet the minimum income, you are unable to proceed based on affordability. The target is for your monthly rent and financial commitments not to exceed 45% of your monthly net income once all have been considered.

Employment and Income

Yes you are able to apply if you provide 3 months’ payslips to evidence your income. If you have changed employers within the last 3 months, your application may still be considered if you are able to supply two consecutive payslips from your previous employment and one full month’s payslip from your new employer.

Yes. We will assess your application using your new salary if you are able to supply at least one month’s full payslip at the increased amount.

  • Employed Income – You must have 3 months’ consecutive pay slips from your previous or current employer
  • Self-Employed Income – A minimum of 2 Years SA302’s and Tax overviews are required for sole traders and Limited Company
  • Directors (the average net profit of the last 2 years will be used)
  • Fixed Term Contractors – You must have a minimum of 3 months’ pay slips and a minimum of 12 months remaining on your current contract at the time of the tenancy start date
  • Zero Hour Contract Workers – You must have a minimum of 6 months’ consecutive pay slips available
  • Pension Income – Last 3 Month’s Pay slip/statement
  • Universal Credit Statement or Award Letter evidencing Working Tax Credit
  • Personal Independence Payment (PIP) – Latest Annual Statement required
  • Court Ordered Child Maintenance – Copy of court order and evidence of payments received

Overtime, bonuses, and commissions are examples of non-guaranteed income. These will be considered and calculated using the average amount over the last 3 months’ consecutive payslips or, if paid annually, the latest two payment amounts. When calculating this non-guaranteed income, 50% of the total will be taken into consideration.

In line with the Greater London Authority (GLA), properties in London have household incomes capped at £75,000. For properties outside of London, household incomes are capped at £60,000 in line with Homes England.

When applying for a IMR home, you will be required to demonstrate a good credit history. We are unable to proceed with applications where members of the household have any of the following registered on their credit file:

  • County Court Judgement
  • Defaults which include late payments
  • Individual Voluntary Arrangement (IVA)
  • Credit agreement missed payments
  • Bankruptcy

Changes in Circumstances

As part of your application you will be required to obtain satisfactory references by our third party agency. They will review your current circumstances to ascertain suitability and affordability for the scheme. This will also entail an assessment of any impending changes to your financial circumstances which may impact on your households ongoing affordability.

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