My rent charges

This is a common query. Rents will vary from one property to another even though they may be in the same street. The neighbour may have a different tenancy agreement with a different rent type e.g. social rent or affordable rent. These rents are calculated differently and one type is based on the market rental valuation at the time of letting. This will mean that neighbours in the same street can have different rents. You can see all the different types in the introduction on this page and there is more information available on how they are calculated should you wish to explore the topic further.

If you contact us please note that we cannot discuss other customer’s details with you.

When we calculate your Direct Debit, we take into account any arrears or credit, as well as charges over the course of the year, which means your payment amount may be different to your monthly rent charge. 

Our Income Team will be happy to help if you have any questions.

To get your monthly value, simply multiply your weekly charge by 52, then divide the total by 12 (as we process weekly charges on a Monday and there are usually 52 in a year).

Remember, if your account is in arrears or in credit this will affect your direct debit calculation. Simply contact our Income Team if you have any questions.

Every few years, there are 53 Mondays within the year. This last happened during our April 2019 reviews, and will happen again during our April 2024 reviews. This simply means that you should multiply your weekly value by 53 before dividing by 12 to get your monthly value. Our Income Team will be happy to help if you have further questions.

The Consumer Price Index (CPI) is a measure of inflation over time that is provided by the Office of National Statistics, and can be found online.

It is the percentage change in price for an average household ‘shopping basket’ of typical from one month to the next.

Along with other indices, it can affect interest rates, tax allowances, wages, benefits, pensions and contracts.

The Retail Price Index (RPI) is similar to CPI, and is another measure of inflation over time provided by the Office of National Statistics.

RPI also shows the change in prices for goods and services from one month to the next, but unlike CPI, the typical household ‘shopping basket’ includes household costs like mortgages and council tax. It is another measure of inflation.

It can also affect interest rates, tax allowances, wages, benefits, pensions and contracts.

Social rent (formerly ‘target rent’ but now also known as ‘formula rent’) is calculated separately from service and other charges. The calculation is based on a formula that takes into consideration:

• an independent property valuation;
• the number of bedrooms in your home; and
• the average household incomes in your local authority area.

We are required to use the formula as it is provided by the Regulator of Social Housing.

Affordable rent is set at a maximum of 80% of the market rental value for a similar property in the same area. It includes the service charge, but not personal service charges. Our policy is to cap affordable rents at Local Housing Allowance (LHA) rates when we initially set the rent.

It is the Local Housing Allowance rate for Housing Benefit.

Our third-party supplier gives us a value that has been calculated using a method that is approved by the Royal Institute of Chartered Surveyors (RICS) and meets the regulations.

The Regulator of Social Housing, using its Rent Standards. This can be overruled by Government legislation, like the Welfare Reform and Work Act 2016 which instructed a 1% rent reduction for four years. This ended in April 2019, which means the current Rent Standard is used, and will be for the next five years.

The 2020 Rent Standard allows rent to be increased by the rate of September’s Consumer Price Index (CPI) plus 1%. This is valid for the next five years.

Our rent review is considered annually and is agreed by the Board, and we also involve our customer engagement groups.

Again this is the Regulator of Social Housing, using its Rent Standards. This can be overruled by Government legislation, like the Welfare Reform and Work Act 2016 which instructed a 1% rent reduction for four years. This ended in April 2019, which means the current Rent Standard is used, and will be for the next five years.

You can contact us within 28 days of the date given on the notice we send you, and we will check that your rent has been correctly calculated.

If you’re not satisfied with our response you can contact Citizens Advice and you may be able to appeal to the Government’s First Tier Tribunal.

If you have a secure tenancy, your rent type is known as fair rent, which comes from the Rent Act 1977. New secure tenancies under this legislation are no longer available.

If you have a secure tenancy, your rent would have been set several years ago by the Valuation Office Agency. You can find out how we review your rent below.

Fair rent was set using the Rent Act 1977 but is also still subject to any relevant regulations from the Regulator of Social Housing.

If you have a secure tenancy the maximum level of rent that can be charged (the ‘fair rent’) is set independently by the Government’s Valuation Office Agency. The valuation states your rent and service charge total cannot be higher than the Registered Rent stated. Your rent element cannot be higher than the social rent calculation.

You can check the registered rent for your home on the Government website.

Your charges are reviewed each year. We apply to the Valuation Office to review and re-register your rent every two years. Every other year, your rent is reviewed against the existing Rent Register and the social (formula) rent.

For customers with social rental fair rent tenancies, if the current rent falls below both values, we can increase it up to a maximum of the Consumer Price Index (CPI) plus 1%.

Every two years, when we apply to have your rent reviewed and re-registered, you may receive a Rent Register or other letters from the Valuation Office. We can apply to them up to three months before the two-year anniversary of the review to make sure it’s carried out in plenty of time. The Rent Register’s ‘effective date’ means that, even if we receive the Rent Register early, changes can’t be applied before the effective date to ensure the two-year anniversary is kept.

It is unlikely that your revised rent will be the value of your Rent Register as this is a maximum value. You can see that in box a) of your statement.

If you have a social rental fair rent tenancy, any increase will be based on your existing rent and is restricted to a maximum increase of the September Consumer Price Index (CPI) plus 1%. If you pay a service charge along with your rent, it cannot go over the Rent Register total. 

If you have a shared ownership fair rent tenancy any increase will be based on your existing rent and is restricted to a maximum increase of the December Retail Price Index (RPI) or the registration value.

The Valuation Office reviews your service charge, and it is restricted to the amount noted on box e) of your Rent Register.

For customers with social rental fair rent tenancies, we compare:

• your current rent charge plus September Consumer Price Index (CPI) plus 1%;
• the Rent Register value less the amount attributed to services; and
• the formula rent.

For customers with shared ownership fair rent tenancies, we compare:

• your current rent charge along with December’s Retail Price Index (RPI); and
• the Rent Register value less the amount attributed to services.

We increase your rent to the lowest of the values compared and, if you have a service charge, it will be the amount noted as ‘attributable to services’. Then we write to you to advise you of any changes, being sure to give a minimum of 28 days’ notice.

Formula rent is the same as social rent and is calculated using the formula we are required to use, which is provided by the Regulator of Social Housing.

You can appeal the Rent Officer’s decision by writing to them within 28 days of the Rent Register being served. The registered rent will be considered by the First Tier Tribunal. You can find the most up-to-date contact details on the factsheet supplied alongside your copy of the Rent Register.

We can appeal in the same way you can. It is unusual for us to appeal the Rent Register value, unless we feel the amount noted on box e) of the Rent Register, for services, unfairly restricts the cost of the services we provide.

Your rent will depend on whether the mutual exchange is by assignment or surrender, and whether the rent is social or affordable.

We will confirm these details during the exchange, but you can find more information here.

As you will be assigned the tenancy of the outgoing customer, so you will inherit their rent and other charges.

As you are surrendering your current tenancy and being issued a new one, your rent will be calculated based on whether it is social or affordable.

When we review your fixed term tenancy, we check your rent. It won’t increase, but may decrease, especially if you pay affordable rent and market rental values have changed.

Our third-party supplier gives us a value that has been calculated using a method that is approved by the Royal Institute of Chartered Surveyors (RICS) and meets the regulations.

You can find details of this on our Manage My Tenancy page.

Your rent charge depends on what share of the property you initially purchased. The annual rental value is calculated by subtracting the value of your share from the agreed sale value and multiplying that figure by 2.75%. This is divided by 12 to give the monthly rent.

For example, on a property with an agreed sale value of £100,000 with a 30% share (£30,000) purchased outright, rent is due on the remaining £70,000.

£70,000 x 2.75% = £1,925 annual. Divided by 12, this gives £160.42 per month.

The Homes England Capital Funding Guide Government guidance specifies a maximum of 3% but encourages all social housing providers to use no more than 2.75% - the figure we have chosen to use.

The Government guidance regulates how the initial rent is set and we are also subject to the Regulator of Social Housing.

Details of how we may increase your rent are in the terms of your lease.

You can contact us within 28 days of the date given on the notice we send you, and we will check that your rent has been correctly calculated.

If you’re not satisfied with our response you can contact Citizens Advice and you may be able to appeal to the Government’s First Tier Tribunal.

It is set at 80% of market rental value and includes service charges.

The Homes England Capital Funding Guide Government guidance outlines how the initial rent is set, and we are also subject to regulations from the Regulator of Social Housing.

Details of how we may increase your rent are in the terms of your tenancy agreement. It is usually an annual increase at the rate of September’s Retail Price Index (RPI).

You can contact us within 28 days of the date given on the notice we send you, and we will check that your rent has been correctly calculated.

If you’re not satisfied with our response you can contact Citizens Advice and you may be able to appeal to the Government’s First Tier Tribunal.

Rent benchmarks by ward are published by the Greater London Authority (GLA) every year on their website, these are an initial maximum including any service charge. As an intermediate rent we will also check that the benchmark rent is no higher than 80% of market rental value including service charges.

The Greater London Authority (GLA) outlines how the initial rent is set and how we may increase it. We are also subject to regulations from the Regulator of Social Housing.

The Greater London Authority (GLA) also states that the maximum we can increase these rents is by September CPI each year.

You can contact us within 28 days of the date given on the notice we send you, and we will check that your rent has been correctly calculated.

If you’re not satisfied with our response you can contact Citizens Advice and you may be able to appeal to the Government’s First Tier Tribunal.

Please see the Greater London Authority (GLA) information in this link.

If services have been provided to your home, the charges have been reviewed to reflect the actual cost of providing the service. 

For more information on how these charges are reviewed, and on the services provided as part of your charge, please visit the Service Charges page.

If you receive housing benefit, this will cover all Rent and Service Charge elements for a property in Retirement Housing and Supported Housing. If you don’t receive housing benefit, you will be responsible for these payments yourself.

In most of our Extra Care schemes, there are Wellbeing Charges contained in your Service Charge. The Wellbeing Charge part of the Service Charge isn’t covered by housing benefit, so you will be responsible for paying this part yourself, whether or not you receive housing benefit.

The ethos of our Extra Care schemes is based around the wellbeing of our customers. As part of our offer, at most of our Extra Care schemes, we have a care team based on-site overnight to answer lifeline emergencies.

If a lifeline pendant or pullcord is activated, the carers will answer to ascertain the emergency. Depending on the emergency they will act accordingly, for example calling paramedics or informing next of kin. This charge doesn’t provide care as part of an individual’s package, this is providing staff response in an emergency.

If you are a leaseholder of your property and we own the freehold, the terms of your lease require you to pay a ground rent. Any increase is also subject to the terms of the lease.

If you are a shared owner or an owner in a block of flats in which we have other properties and are responsible for the freehold of the block, this charge covers buildings insurance.

This insurance doesn’t cover the contents of your home, so you must arrange your own cover. We have negotiated a low-cost contents insurance scheme exclusively for our customers.