How is my rent calculated?
In April 2002 the Government introduced rent reforms for tenants of social landlords, which included local authorities and housing associations.
The Government’s aims for the national social housing rent reforms are as follows:
These factors have been set out in a formula for local authorities and housing associations to calculate target rents at the individual property level. The elements of the formula are as follows:
These new rents are being introduced gradually so that each year the actual rent of each property moves from its current level (up or down) to its target rent by using the above formula. Originally the Government expected target rents to be fully implemented by 2012, this has now been extended to 2017 following adjustments to the process.
Protection for tenants
The Government has introduced "rent limits" to prevent any excessively large increases falling on any tenants. The guidance imposes a cap to limit annual increases to inflation+0.5%, plus a maximum of £2-per-week.
In the past the rent charged by the council has included a sum for the rent of the dwelling and an amount for pooled service charges. The Government formula only applies to the rent you pay for your home. The Council , following a review of the application of a separate service charge for those properties , for example flats, where tenants receive shared services, introduced in October 2007 service charges for properties receiving a cleaning service and where digital aerials have been installed. The Council will review progress before it considers introducing further charges in the future. The protection for tenants to limit annual rent increases, outlined in the above paragraph, will also apply to any service charge.
The rent reforms do not affect any entitlement to Housing Benefit. If you receive help with your rent now you should still be entitled to help as long as your circumstances stay the same.