How rents are set
If you are an assured tenant, your rent is set by SHA. If you are a secure tenant, your rent is set by the Rent Service (a government agency). Your tenancy agreement will state which type of tenancy you have.
We have a rent setting policy which we follow when setting your rent. The policy follows the rules of our regulatory body, the Homes and Communities Agency. We review rents every year.
Rents are set by taking into account the value of the property, the property size and the average earnings of manual workers in the area. This ensures that your rent is classed as ‘affordable’.
When setting rents, we use the following principles:
- Your annual rent increase will not increase by more than the increase in the Retail Price Index plus 0.5% plus £2.
- Rents for new properties will be set in line with existing rents.
- Any property becoming empty will have a new rent set at the level for the following financial year. For example, a property coming empty in 2017/2018 will be re-let using the rent for 2018/2019.
You will be given one month’s notice of a rent increase.
After consultation with you, the Rent Service will set a rent which it considers to be a fair rent. Your fair rent will take into account the age, character and location of the property, and will be guided by fair rents for similar accommodation in the area.
Your rent will be reviewed at two yearly intervals. When the new rent has been set you will be given 4 weeks’ notice of the change in rent. If you disagree with the rent set by the rent officer you can appeal to the Rent Assessment Committee who will review the rent and make a final decision.
What your rent pays for
We have to make sure that the rent covers our costs. Our main costs include repaying loans taken out to develop new properties, the cost of maintenance and improvements, housing management and costs of running the association.
If you have a tenancy where we provide extra services, your weekly rent will include a service charge. Please see our separate leaflet on estate services and service charges for more information.