How we calculate your rent

The government introduced rent restructuring rules in 2001 which housing associations and local authorities are required to follow. These rules state that all properties have a target rent, and we are required to charge your rent on this basis.

To ensure customers are protected the government has set a limit on these rent increases. The calculation formulae used is as follows:

The rate of inflation Retail Price Index (or RPI) + 0.5% + £2 per week for rents that are currently below target limits.

Once a property reaches it’s target limit the annual rent increase will be based upon the standard inflation (RPI) + 0.5% as set by the government.

If you would like more information you can read our Rent Setting Policy or contact us.

Please note: This information only applies to customers who pay social housing rent. It does not apply to Intermediate Rent customers or shared home owners.

Rent increase for April 2011

The amount we have to increase your rent each year is decided by the government. The basis they use is the previous year's September inflation percentage. The September 2010 inflation figure was 4.6% so the increase in rents for April 2011 is 5.1% (4.6% + 0.5%), plus further amounts if your rent is below the rent level set for your home and other similar sized properties. 

Last year we were able to avoid increasing your rent but for 2011/12 we will have to increase rents in line with government policy.

Given the current financial and economic situation, it might be worth checking your eligibility for Housing Benefit with your local council, or you can get Information on benefits from the Department of Work and Pensions. This can be found on the DWP website. This will tell you where your local agencies are, including:

• Jobcentre Plus for crisis loans, funeral payments, incapacity benefit, income support, industrial injuries disablement benefit, jobseeker’s allowance, and other benefits for people of working age.
• Child Support Agency for child support benefit.
•  The Pension Service for state pension, pension credit, winter fuel payment disability and carers service – for attendance allowance, carer's allowance, and disability living allowance. This service is also available in the resource centre every Tuesday morning.

If you are already in receipt of Housing Benefit you do not need to tell the council's revenue and benefits section.

For more advice on paying your rent, benefits, how to save money contact your Neighbourhood Housing Officer.