Rent setting
The rent we charge you covers the use and occupation of your home. All the rents we collect are used to cover such items as:
• The cost of managing and repairing your home
• Provision for major repairs or improvements in the future
• Loss of income on empty properties and rent arrears
• A contribution towards the cost of the new homes we build.
How we work out your rent
In April 2002 the government brought in a new way of working out rents for housing association homes. All housing associations and councils now have a formula for calculating rents. The aim of this formula is that rents should be fairer, reflecting more closely the size, condition and location of a property and local earnings, regardless of who the landlord is.
Every property has a target rent, based on the following formula:
• 30% of the rent is based on relative property values
• 70% of the rent is based on relative local earnings
• The average council and, or housing association mean rent level in the area.
The actual rent that you’re currently paying is likely to be different from the target rent for your home. For this reason, we have been given 10 years, from 2002, to make the changes to your rent.
Annual rent reviews
To work towards your target rent, we’ll adjust your rent each year. Your rent will change each year by an amount not greater than the retail price index, plus ½ %, plus or minus £2 per week (£2.17 per week if you pay your rent over 48 weeks). The aim is that, by 2012, all tenants will be paying the target rent for their home. Until then, similar increases or decreases will be made to your rent each year. |