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 if you are seeking funding for a: 

  • constituency office  

  • accommodation  

  • MP’s home office

  1. Note!

    Before starting the form, please read our evidence requirements for the documents you must supply.

    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 a few tabs. Any field marked with a red asterisk is mandatory. As you complete this form, depending on the answers you give, more tabs or fields may appear asking for further relevant information.  

    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 Initial Details  section, please select the type of property you would like to register from the drop-down in the Type of Property field. 

  8. Step7

    Registering an MP’s Home Office 

    If you are registering a home office, you will need to complete Date Claims to Start field, to confirm the date you would like funding from, and the Address Details. 

    Once these are complete, you can skip to Step 16. 

  9. Step8

    Registering an Accommodation or Constituency Office that you own 

    Once you have answered Yes to the Do you own the property? Field, you will need to complete the Date Claims to Start field to confirm the date you would like funding from, and complete the Address Detailssection. 

    You will then need to complete the Proof (Property Owner) tab, letting us know which type of proof you will be attaching to the form. You can find our Property Registration Form evidence requirements here. 

    For a constituency office, you will also need to complete the Sub-Letting tab, to let us know if you are/will be subletting the property to another person/organisation. Please complete the Property Being Sublet? field. Further guidance on subletting can be found here. 

    Once these are complete, you can skip to Step 10

  10. Step9

    Registering an Accommodation or Constituency Office that you rent 

    Once you have answered No in the Do you own the property? Field, you will need to complete the Is Rent Funding Required? Field.

    If rent funding is not required, you will need to complete the Date Claims to Start field to confirm the date you would like funding from, and complete the Address Details section.

    You will then need to complete the Payments tab to give us information such as whether you require a deposit loan, and how you would like for your rent to be paid. 

    You should then complete the Proof (IPSA Funding) tab, letting us know which type of proof you will be attaching to the form. You can find our Property Registration Form evidence requirements here. 

    For a constituency office, you will also need to complete the Sub-Letting tab, to let us know if you are/will be subletting the property to another person/organisation.

    Please complete the Property Being Sublet? field. Further guidance on subletting can be found here. 

    Once these are complete, you can skip to Step 10. 

  11. Step10

    Select Save as Draft at the bottom of the screen. 

  12. Step11

    To attach a copy of the relevant evidence, such as a tenancy agreement and proof of landlord/agent bank details, select the Paperclip icon in the top-right corner of the screen. 

  13. Step12

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

  14. Step13

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

  15. Step14

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

  16. Step15

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

  17. Step16

    A pop-up will appear informing you the form has successfully been submitted.

    Note down the IPZZ number for future reference. 

    You will know the form has been submitted and received as the Status at the top of the form will change from Draft  to Active. 

    You will also receive an email within a few minutes to let you know that we have received the form. 

    You may now close the form. 

  18. Step17

    We will review the form, and the documents provided. If we have any questions, we will be in touch.  

  19. Step18

    If you are registering a Home Office or Accommodation/Constituency Office that you own, once we have reviewed the form and are satisfied with the information provided, the form will be approved and completed.

    If you are registering an Accommodation or Constituency Office that you rent, once we have reviewed the form and are satisfied with the information provided, we will return the form to you to approve the details that we will be registering your address and setting up payments with (if requested).  

    Please note, we can only register your property and set up any payments once you have approved this form.  

    You will receive an automated email to let you know that we have returned the form to you.  

    Please go to your Task Manager in IPSA Online and select the task titled PRF Stage 3: Customer Approval for the relevant form number. 

    You will notice a few more tabs with the information you need to review.  

    If you believe there is information on the form that isn’t right, please select Reject and provide details of the issue. We will review this and be back in touch. 

    If you are happy with this information and have reviewed the Declaration on the Property Details tab, please select Approve.  

     

  20. Step19

    Following your approval, the Homes & Offices Services Team (HOST) will finish setting up the property and send the form onto our Finance team to set up any payment(s) agreed.

    We will aim to do this as soon as possible, but please allow 8 days for payments to reach the recipients bank accounts.

    You will also receive an automated email confirming when the processing of the form is complete.  

The property amendment form allows you to inform IPSA of any changes to one of your registered properties. Changes may include:

  • renewing a property

  • cancelling a property

  • amending a rent amount

  • amending rent due dates

  • changing how you pay your rent

  • amending bank details of a landlord/agent

  • amending a landlord/agent’s details

Before starting the form, please read our evidence requirements for the documents you must supply.

  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

    In the Change Details section, select the types of changes that you would like to make to the selected property.

    You can select as many changes as are relevant.

    With each change you select, a new tab will appear at the top of the form for that change.

  7. Step6

    Select the Select Property field and press the space bar.

    Select the relevant address you want to update (ACC is Accommodation and CON is Constituency).

  8. Step7

    Depending on the type of change(s) you have selected, a tab for each will appear at the top of the form.

    Please view each available tab and provide the details requested.

  9. Step8

    Renew Property

    On this tab, you will be asked if you have a new agreement.

    If “Yes”, please provide the start and end date of the new agreement.

    If your agreement is rolling on or you have some other form of extension with the landlord, please select “No” and provide answers to additional fields.

  10. Step9

    Cancel Property

    On this tab, please use the Calendaricon to confirm the date that your agreement at the property will end, and, therefore, the date you are liable for costs up until.

  11. Step10

    Amend Rent Details

    In the Changes to be made section, select all changes that apply.

    Depending on the options you select more fields will appear in the Details of Change section outlining the information you must supply.

  12. Step11

    Amend Deposit Loan Amount

    On this tab, you can let us know if the deposit for the property has increased or decreased, and by how much.

    If it has increased, we will pay you the additional amount on top of your current loan.

    If it has decreased, we will record this and await the partial repayment.

  13. Step12

    Landlord/Agent/Payee

    On this tab, select whether you would like to change the details of the landlord, agent or payee. This includes if the landlord or agent has changed or if only their contact details have changed.

    If the landlord or agent has changed – as well as the account details of where we pay rent – select both Landlord Details or Agent Details and Payee Details.

    Depending on the options you select in the Landlord/Agent/Payee section, further sections will appear with the fields to complete.

  14. Step13

    Other

    If none of the previous options covers the change you want to make, please use the Other tab.

    Provide the date the change is effective from using the Calendar icon and details of the change in the Additional Information box.

  15. Step14

    Select Save as Draft at the bottom of the screen.

    This is an important step as you won’t be able to attach any documents until the form has been saved as a draft.

  16. Step15

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

    For more information about the documents you must provide, visit Property Amendment Form evidence requirements.

  17. Step16

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

  18. Step17

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

  19. Step18

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

  20. Step19

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

  21. Step20

    A pop-up will appear informing you the form has successfully been submitted.

    Note down the IPZZ Number for future reference.

    You will know the form has been submitted and received as the Status at the top of the form will change from Draft to Active.

    You may now close the form.

  22. Step21

    You will receive an automated email to confirm the form has been received, and a further email when it is complete or if we have returned it for any additional information.

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.