How we set your rent
In 2002/2003 the Government introduced a new way of working out rents, which must be followed by registered social landlords. This will mean, for example, that two people living in identical properties in the same area will pay a similar rent. At the moment, this is not always the case.
The aim of the change is to take away some of the unfairness of the previous system. It is doing this by using a formula that sets a target rent for each property that we must reach by 2012.
As a result, MHT will calculate your rent based on a formula made up of the following elements:
- property values within the Borough
- average weekly manual wages in the area
- the number of bedrooms you have.
The new formula means that;
- 70% of your rent will be based on local earnings
- 30% of your rent will be based on property values
- a bedroom factor will ensure that larger properties cost more
To avoid making extreme changes to the rent in any one year, the formula is being implemented over a ten year period ending in 2012.
The Government has set 'caps and limits' to make sure tenants are protected from sudden increases. In February 2008, we sent out Rent Increase Notices. The Notices indicated what you are currently paying and what your new rent will be from 1 April 2008. If you receive Housing Benefit you need to notify them of the increase so that they can adjust your benefit accordingly.
All tenants will be given a least one month's notice of any rent increase
Rent Increases
Rents for assured tenants go up every year in April (or May for some tenants). For secure tenancies the Rent Officer is asked to increase the rent every two years in line with the latest rent values. The Rent Officer may set a different rent to that which we have asked for. In some cases we may also need to phase the Rent Officer's proposed rent increase over two years, in order to comply with guidance from our regulator (the Housing Corporation). In these cases we will increase the rents for secure tenants annually.