Last updated 01/02/2012
The Government has established a framework for setting rents for housing association homes. The aim of the framework is to make the process of setting rents across the country impartial and is linked directly to the value of the property you live in and the average earnings within the region. This way, within the same area similar sized properties will pay a similar rent, as all social landlords must follow the same government set calculation.
In line with the Rent Restructuring Framework issued by the Tenant Services Authority, a formula is used to calculate what is called a target rent. This is the rent the Government says should be charged for similar properties owned by different landlords in the same region. Our Association’s Board then approves the annual rent plan, which specifies the methodology to set the target rent within that period.
Rent can increase by up to the rate of inflation RPI (Retail Price Index published by the Government in September) plus 0.5% plus £2.00 per week. The RPI in September 2011 was 5.6%. Therefore your rent could increase by 6.1% + £2 in April 2012.
Tenants who benefit from ‘fair rents’ protection, retain this under the framework. In this case, the ‘Fair rent’ is set by your Rent Officer. If the Rent Officer sets a ‘fair rent’ (excluding service charges) above our adjusted target rent, then we will adopt the adjusted target rent rather than the higher ‘fair rent’. In moving towards the target rent, the maximum increase to the existing rent is the rate of inflation RPI plus 0.5%, plus or minus £2 per week, in any one year.
Affordable Rent tenancies
Following receipt of your rent increase notice, you have to make arrangements to pay it. If you are paying by standing order through your bank, you should inform them that the amount has changed. You should also notify your Housing Benefit office if you are claiming benefit.
If you are worried that you might not be able to pay your rent, you should contact us immediately or seek advice from a citizens advice bureau or housing advice centre. We offer a Financial Inclusion Service to assist our tenants in dealing with benefit problems, debt problems, and also provide advice on other matters concerning finances. This is a very worthwhile, free service, and can help to increase your household income. If this is something you would be interested in please call 0845 505 3355 or 0300 111 1133 from your mobile to speak to our Money Advisors or to make an appointment.
If you think that the proposed new rent is higher than the market rent value for your property, you can refer this notice to your local Rent Assessment Committee. You must do this before the starting date of the proposed new rent in the rent increase notice. You should also notify us that you are doing so. To refer the notice to the Rent Assessment Committee, you must use the form Application referring a notice proposing a new rent under an Assured Periodic Tenancy or Agricultural Occupancy to a Rent Assessment Committee. You can obtain this from a rent assessment panel, housing advice centre, legal stationer (details can be found in the telephone directory) or online www.direct.gov.uk/en/HomeAndCommunity/Privaterenting/Problemsanddisputes/DG_191684
The Rent Assessment Committee will consider your application and decide what the maximum rent for your home should be. In setting a rent, the committee must decide what rent the landlord could reasonably expect for the property if it were let on the open market under a new tenancy on the same terms. The committee may therefore set a rent that is higher, lower or the same as the proposed new rent.
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Updated by Athanasios Protopapas on 01/02/2012 15:54:30
Comment: New document addedDetails: (show)
New Document created; title:"Rent Increases", subTitle:"", cover image:"rent increase.jpg".
New Chapter added; title:"Overview" image:"" order:"1".
New Chapter added; title:"How we set your rent" image:"" order:"2".
New Chapter added; title:"When the proposed new rent can start" image:"" order:"3".
New Chapter added; title:"What you must do when you receive your rent increase notice" image:"" order:"4".