A good house helps attract a better quality of applicant. It's tax advantageous to the employee as they are not taxed on the house as a benefit in kind. If you didn't have a house with the job you would be paying rent out of taxed income (assuming you didn't own your own house)
We’ve still got awb in Scotland and if an employee is in a tied house, the maximum deduction for the house is something like £1 a month. There can be also no deduction/reduction in wages for the property that would take earnings after “rent” below min wage, so if you’re providing a tied cottage worth say £800 to £950/month on the open market, you’re unlikely to be able to adjust the remuneration package to an extent that you wouldn’t be considerably better off just letting it out.
Benefit of tied house from an employer perspective is it doesn’t create a tenancy. Benefit for both parties is living on site.
From an employee perspective, I’d rather have the money, however if working in an area of high house prices and rent, then there is a benefit to both parties.
Don’t think you need an EPC rating on tied accommodation
Many tenant farmers have a farmhouse that they are required to live in as a condition of the farm tenancy. Not always the ideal situation not least because the farmer will likely be homeless if he were to lose or surrender the tenancy for one reason or another.
A great many staff cottages have been sold off or rented out. In some cases with todays shortage of experienced staff, no on farm cottage available can cause real difficulties in recruitment.
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