Subletting

Overview

IPSA defines subletting as an MP using or permitting the use of part or all of their IPSA-funded constituency office for non-parliamentary activities, including campaigning and party work.

If an MP decides to sublet part of their IPSA-funded property, the MP must inform IPSA and confirm the details and a sublet fee must be charged and repaid to IPSA.

If you are unsure about whether a sublet fee should be charged, please contact your Regional HOST Account Manager.

Scheme rules

Where MPs grant a licence or give permission to any other person to use the constituency office or any part of it (such as a subletting arrangement), a fee must be charged which reflects an appropriate proportion of the rent and other costs incurred.

The fee must be remitted to IPSA in its entirety. [6.18]

The MP must notify IPSA at the start of a subletting/licensee-licensor arrangement, and provide information as required, including:

  • a copy of the subletting/licensee-licensor agreement

  • details of the sublessee/licensee

  • the proportion of the property being sublet or occupied

  • the fee being charged, and

  • the frequency and form of repayment of such fees to IPSA [6.19]

IPSA will not cover any costs directly attributable to use of the office by the sublessee/licensee, including the cost of making good dilapidations or repairs as a result of damage caused by the actions of the sublessee/licensee.

IPSA will not cover costs exceeding the office costs budget limit which arise as a result of the subletting or licence arrangement coming to an end. [6.20]

Using IPSA Online

The Property Registration Form allows you to register a property with IPSA.

You should use this form to register your constituency office.

  1. Note!

    To complete a Property Registration Form, open IPSA Online.

  2. Step1

    Select the Main menu tab.

  3. Step2

    Select the Forms tab on the left of the screen.

  4. Step3

    Select Property Registration Form.

    You will now be required to complete several fields with information spread over several tabs. Any field marked with a red asterisk is mandatory. You may not need to complete all tabs, these depend on the type of property you are registering.

    Any box marked with an information icon contains important information regarding the registration of your property. Please ensure you read this in each section.

  5. Step4

    The Form ID field will state [NEW] and will be automatically generated when the form is saved.

  6. Step5

    In the Form description field enter a description of what the form is for, following this convention:

    MP Name – First Line of Address – Property Type

  7. Step6

    In the MP or staff name section, in the Type of property field, press the space bar and select the type of property you wish to register.

  8. Step7

    Within the Property details section, in the Type of property field, select the drop-down arrow and select the type of property again.

  9. Step8

    Complete the address details.

  10. Step9

    If registering a Private residence, go straight to the Declaration tab.

    If registering a Home office, go straight to the Home office tab.

    If registering any other property, go to the Tenancy agreement tab.

  11. Step10

    Only complete the Home office tab if you are registering a property as a Home office.

  12. Step11

    In the Date claim to start field, select the Calendar icon and select the relevant date claims for this property will start.

  13. Step12

    To list the costs you wish to claim for, in the next section select the Add button.

  14. Step13

    In the Expense to claim field, enter a description of the expense.

  15. Step14

    In the Percentage to claim field, enter the percentage of the total cost that will be claimed.

  16. Step15

    After entering each expense on separate lines, go straight to the Declaration tab.

  17. Step16

    Only complete the Tenancy agreement tab if you are registering a Constituency office or IPSA funded accommodation.

  18. Step17

    Using the information on your lease or tenancy agreement, complete the fields in the Tenancy agreement section.

  19. Step18

    If this property is replacing a property already registered, select Yes in the Replace current property? field and complete a Property Amendment Form to inform IPSA.

  20. Step19

    In the Shared tenancy section, please select yes or no to tell us if you are sharing the tenancy and select your type of landlord.

  21. Step20

    If you require a deposit loan for the property, select the Deposit Loan tab.

  22. Step21

    Complete the fields of the Deposit Loan with details of the deposit loan you require. The date you enter should be the date you wish the deposit loan to be paid.

  23. Step22

    Select the Payee details tab.

  24. Step23

    When you are in Payee details in the Lease section, complete both fields. If you do not have a signed lease, you should submit the signed lease to us via email after submitting your Property Registration Form. Please include the form number as a reference.

  25. Step24

    If you require IPSA to pay your rent directly, complete all fields in the Direct rental payments section. If you will claim rent via reimbursement claims, go straight to the Landlord details section at the bottom of the page.

  26. Step25

    In the Payee details section, complete all fields to provide the details of who IPSA will be paying.

  27. Step26

    In the Landlord details section, select Add and enter the relevant details.

  28. Step27

    Select the Declaration tab.

  29. Step28

    When in the Declaration tab, in the Additional Information section, enter any further relevant information IPSA should be aware of.

  30. Step29

    Read the Disclaimer.

  31. Step30

    Read the Declaration carefully and make sure you have adhered to it.

  32. Step31

    Select the drop-down arrow below the Declaration and select Yes.

  33. Step32

    Select Save as Draft at the bottom of the screen.

  34. Step33

    To attach a copy of your tenancy agreement and any relevant documents, select the Paperclip icon in the top-right corner of the screen.

  35. Step34

    First select Add a document and then select Property documents from the Document type drop-down.

  36. Step35

    Select Upload and choose the relevant documents from your computer’s documents.

  37. Step36

    Enter a Document title, preferably noting the first line of the address, then select Save and close the document archive.

  38. Step37

    When you are satisfied you have completed the form with all relevant details, Submit at the bottom of the screen.

  39. Step38

    A pop-up will appear informing you the form has successfully been submitted. Note down the IPZZ number for future reference.

The Property Amendment Form allows you to Inform IPSA of any changes to one of your registered properties. Changes may include:

  • amending bank details of a landlord

  • amending rent due dates

  • amending a landlord’s details

  • amending a rent amount

  • cancelling rent payments

  • submitting a lease renewal

  • suspending a rental payment

  • restarting a rental payment

  • leaving an office

  1. Note!

    To complete the Property Amendment Form, open IPSA Online.

  2. Step1

    Select the Forms tab on the left of the screen.

  3. Step2

    Select the Property Amendment Form.

  4. Step3

    The Form ID field will state [NEW] and will be automatically generated when the form is saved.

  5. Step4

    In the Form description field enter a description of what the form is for, following this convention: MP Name – Type of change – Property Type.

  6. Step5

    Select the Registered address field and press the space bar. Select the relevant address you wish to update (ACC is Accommodation and CON is Constituency).

  7. Step6

    Select the Type of change field and press the space bar. Select the type of change you wish to make from the list.

  8. Step7

    In the Change effective from field, select the Calendar icon and select the date the change is effective from.

  9. Step8

    In the Details/description field, type in the changes you wish to make to the registered property. Provide as much detail as possible so IPSA does not have to contact you for further information and hold up the processing of your request.

  10. Step9

    Select Save as Draft at the bottom of the screen.

    This is an important step as the Property documents option doesn’t appear until the form has been saved as draft.

  11. Step10

    To attach a copy of any relevant documents, select the Paperclip icon in the top-right corner of the screen.

  12. Step11

    Select Add a document and select Property documents from the Document type drop-down.

  13. Step12

    Select Upload, then select the relevant documents from your computer’s documents.

  14. Step13

    Enter a Document title, preferably noting the first line of the address, then select Save and close the document archive.

  15. Step14

    When you are satisfied you have completed the form with all relevant details, Submit at the bottom of the screen.

  16. Step15

    A pop-up will appear informing you the form has successfully been submitted. Note down the IPZZ number for future reference.

Guidance

MPs can inform IPSA of a new sublet, or amend or cancel an existing sublet using the Sublet Form.

Please complete all the relevant sections, rename the form with your details and the date of submission, and email IPSA and your HOST Account Manager for review.

When deciding what fee to charge for the sublet, MPs must consider:

  • the rent for the property

  • the space/time used

  • any associated costs (if included), and

  • any arrangements the subtenant benefits from

An example of how the sublet fee can be calculated is shown below:

  1. Property rent = £900 per month.

  2. MP sublets 20% of the space.

  3. The subtenant is there for 20 out of 40 office hours a week (50% of the time).

  4. Sublet fee charged = £900 * 0.2 * 0.5 = £90 per month.

If the MP is unsure of the fee that should be charged, we recommend investigating the market value of similar sublet arrangements in your local area.

We strongly recommend MPs have the terms of the Sublet agreement in writing for their own benefit.

A written agreement ensures both parties understand their responsibilities and liabilities clearly and can be held accountable. It also prevents taxpayer money from funding subtenant costs.

A written agreement should contain the following:

1. The address of the property.

2. The name of the sublessee (including a lead individual).

3. A description of the space being sublet (for example, "office room B").

4. The size of the space being sublet:

  • percentage of the total space of the property, or

  • square footage (sqft) of the space being sublet

5. A description of services included in a sublet.

6. The amount of the sublet fee in GBP (£).

7. The sublet fee payment frequency (for example, monthly/quarterly). Ideally, this should be in line with the payment frequency in the superior lease (between MP and the landlord)

8. The type of term agreement (for example, rolling month-to-month, or fixed term).

9. The provision for terminating the agreement. If possible, the agreement should contain a two-month break clause, but as a minimum, it should be in line with the break terms in the superior lease.

10. Details of each party’s liability for associated costs (for example, utilities, broadband, business rates). It is IPSA’s preference that the sublet fee stated in (6.) be inclusive of all associated costs at the property.

If this is not possible and the sublessee is required to pay their share of associated costs in addition to the sublet fee, the agreement should clearly state what proportion/amount they are liable for. 

The agreement should also reflect how the MP will claim the associated costs from IPSA. There are two options for this:

  • MP claims the full amount of the associated costs and the sublessee pays their share to IPSA directly, or

  • MP claims only their proportionate share of associated costs from IPSA and the sublessee pays their share directly to the MP

11. Confirmation of who the sublet fee will be paid to and by whom. There are three options for this, but in all cases, it is the MP’s responsibility to ensure the sublet fee is paid by the subtenant and that IPSA is paid:

  • the sublessee pays the sublet fee directly to our IPSA bank account quoting with the reference "MP Name – sublet"

  • the sublessee pays the sublet fee to the MP and the MP repays the sublet fee to IPSA with the reference "MP Name – sublet"

  • IPSA pays only the MP’s proportion of the rent (that is, the full rent minus the sublet fee), and the sublet fee may be paid directly by the subtenant to the landlord’s account

MPs will be held liable for ensuring any sublet repayments are received by IPSA within 30 days of their due date, or that the rent paid by IPSA only covers the MP’s proportion.

IPSA reserves the right to recover sublet fees directly from the MP.

In all cases, MPs must obtain permission from their landlord before entering a sublet arrangement.

Should an MP fail to obtain their landlord’s permission they could be in breach of their tenancy and will be responsible for any consequences, including financial penalties.

IPSA does not require evidence that permission was granted. The responsibility lies with the MP.

When a sublet is registered with IPSA, if the subtenant is a political party or constituency association, IPSA may organise a RICS valuation of the market rent for the proportion of the property being sublet.

This is to assure ourselves the sublet fee charged is equal to or above the market rate. If the MP would like to arrange their own RICS valuation before entering into a sublet agreement, they are entitled to use the Office Costs budget to cover these costs.

For further information on IPSA’s use of RICS valuations, visit Rental valuations.

IPSA has a duty to the taxpayer to ensure all the properties we fund are used solely by MPs and their staff for parliamentary purposes.

IPSA recognises there are many reasons why a sublet arrangement may be necessary or appropriate and can offer better value for money.

MPs are encouraged to register sublets with IPSA and keep us updated on any changes as soon as possible to remain compliant with the Scheme.

General elections

MPs should complete a Declaration Form to declare the use of IPSA-funded equipment and property.

A Subletting Form should then be completed detailing the terms and conditions of the office sublet. (Section B on the Form.)

For further information on office and equipment use in a general election, visit The dissolution period and Campaigning declaration – IPSA-funded resources.

By-elections

Section B of the Subletting Form should be completed and sent to IPSA.

Contact IPSA

To get additional support, contact us.