How your rent is calculated
The government in 2002 introduced rent restructuring. Its aim was to make all social housing properties in a comparable area have a similar rent: a target rent to aim for. All social housing properties must reach the target rent, plus or minus 5%, by March 2012.
In 2012, we are expecting further guidance from our regulators on how rents will change each year.
Currently, the rent charged on your home is based on a number of things, covering
- Property value
- Average income in the area
- Number of bedrooms
A set formulae is used to calculate the target rent. Working towards this target, the annual change in your rent is calculated using a formulae based on the September Retail Price Index (RPI).
Most years, this will mean an increase in rent. However, in 2010, this meant a decrease in rent for most tenants.