How we set rents
This applies to tenants and leaseholders living in homes managed by our Landlord services.
We follow government rules when deciding how much rent to charge. These rules make sure that:
- rents are fair and affordable
- similar homes have similar rents
- we can maintain homes and build new ones
- rent setting is transparent and consistent
Types of rent
There are three main types of rent:
Social rent
- usually the lowest rent
- set using a government formula which is based on:
- the value of your home
- local average earnings
- number of bedrooms
- this is calculated separately from any service charges you may have
Affordable rent
- usually higher than social rent
- set at up to 80% of local market rent
- includes any applicable service charges
- used where required as part of a funding agreement
Shared ownership rent
- you own a share of your home, and you pay:
- a mortgage on the share you own
- rent on the share the council owns
- rent is based on the value of the unsold share and the individual lease
Your tenancy agreement or lease confirms which type of rent applies to you.
How rent is first set
When a new tenancy starts:
- rent is set in line with government rules
- it will not be higher than the allowed limit for your rent type
- for most existing tenants, rent is not reset if you move to another council property or your tenancy type changes
Rent increases
Your rent can go up, but there are strict limits:
Annual rent reviews
- rents are reviewed once a year
- any increase must follow government rules
Maximum increases
- social rent: up to inflation (Consumer Price Index) plus 1%
- affordable rent: up to inflation (Consumer Price Index) plus 1%
- shared ownership rent: up to inflation (Consumer Price Index) plus 1% for new leases - check your lease for confirmation of how your rents will change
Your rent cannot increase more than the limit set by the government.
Informing you about about rent changes
You will receive at least four weeks’ written notice before any rent increases.
Your letter will explain:
- your new rent
- when it starts
- how it was worked out
Future rent changes
From April 2027, government rules allow the council to gradually bring some social rents closer to the formula rent, where they are lower.
This will:
- be done slowly and gradually
- follow strict limits
- never increase rent above the formula level
How the process is checked
Rent setting is:
- checked internally every year
- reviewed by independent auditors
- monitored by the Regulator of Social Housing
Fairness and equality
We:
- apply rent setting fairly and consistently
- are compliant with government legislation and regulatory requirements relating to rent setting
- take account of individual and local needs where possible
- have completed an equality assessment for our Rent setting policy
If you require any further information about your rent please contact us.
Service charges
You may have other charges to pay as part of your total rent. These extra charges are called 'service charges'. These usually pay for heating in properties where heat or hot water comes from a shared boiler or for warden services in sheltered accommodation.
Contact us if you're not sure why you are paying service charges.