Subletting

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]

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 General Election Repayment 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.

By-elections

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