When we set our rents we aim to keep them within the reach of low-income single people, families and couples. The rent we charge will be the same whether or not you are eligible for housing benefit. We aim to collect enough income to enable us to meet the needs of present and future tenants, but share the Government's aim that by 2012 everyone who lives in a similar area, in a similar home, pays the same rent. To do this there is a formula to calculate the rent for each home - the 'target rent'.
There are two types of rent:
- secure or fair rents - these are for any tenancy that started before 15 January 1989
- assured rents - these are for any tenancy that started after 15 January 1989
How are rents set?
Because the 'target rent' may differ from the current rent (it may be higher or lower), the Government has given everyone a set way to reach the target rent - this protects you from any sudden changes.
The greatest rent rise you will face in any single year until 2012 will be the rate of inflation plus 0.5% plus £2 a week.
For example, if you pay rent of £61.25 now and inflation is 2%, the biggest increase allowed would be:
2.5% of £61.25 + £2 = £3.53 a week.
(This formula applies to secure and assured rents)
Each year we calculate your rent following this and any other local guidelines that may apply. We aim to set rents that are fair, affordable and allow us to repair, improve and manage your home and neighbourhood to a good standard - a place where you want to live and choose to stay.
Secure and fair rents are reviewed every two years by the Rent Service. We will ask the Rent Service what your new rent should be and check it is within the guidelines set. If so, we will charge this new rent. If it is above the maximum increase, we will bring in the new rent in two stages over the two years, protecting you from any large changes.
Assured tenancies are reviewed every year; the exact date will depend on where you live.
In all cases we will notify you in writing four weeks before any changes take place.
If you need to know then when your review date is or need more information, please call the Charge Setting Team at Harvest Response on LoCall 0845 345 0272.
Service charges
In certain properties tenants pay a service charge for things like grounds maintenance and services to communal areas, such as door entry systems for blocks of flats. This charge is reviewed with your rent each year and is based on the actual cost of providing these services.
Other charges
In some areas we collect local authority and water charges on behalf of the local council and water companies. Where this happens, your tenancy agreement will state the arrangements.