Rent setting

All housing associations and councils follow the same formula for calculating rents to ensure your rent is fair and reflects the size, condition and location of your property.

Your rent is set every year following this formula. Your tenancy agreement gives you full details about your rent and any other charges and describes how your rent is calculated.

The rent we charge


The rent we charge you covers the use and occupation of your home.  The rents we collect are used to cover things like the cost of managing and repairing your home and major repairs or improvements in the future.

How we work out your rent


In April 2002 we changed the way we set our rents.  This was because the government brought in a new way of working out rents for housing association homes.  This is sometimes called the “Rent Influencing Regime” or “Rent Restructuring”. All housing associations and councils now have a formula for calculating rents.  This means rents are fairer, reflecting more closely the size, condition and location of a property and local earnings, regardless of who the landlord is.

Every property has a target rent and the formula is based on the following factors:

•    30% of the rent is based on local property values in comparison with national averages
•    70% of the rent is based on county average manual earnings compared to national averages
•    The average council and/or housing association rent level in the area
•    Number of bedrooms

Annual rent reviews

The rents for all newly-built homes are set at the target rent but, because of the changes in calculations since 2002, your rent may be different to the target rent for your home.  

To work towards your target rent, we will adjust your rent each year.  Your rent will change each year by no more than the retail price index (as at the previous September), plus 1⁄2 %, plus or minus £2 per week.

By 2013 we aim for all residents to be paying the target rent for their home, or paying rent that is within a band of 5% (or 10% for sheltered and supported housing) higher or lower than the target rent.  Until then, similar increases or decreases will be made to your rent each year.

We will send you a letter each year telling you about your new rent. We will give you at least 4 weeks’ notice of your new charges.

Rents on properties not covered by the rent influencing regime


The rents on a few of our properties are worked out in a different way to that described above.

Our market rented properties have rents set in accordance with the local market and rents are generally increased by the retail price index plus 1% each year.

The rents on shared ownership dwellings are increased by the retail price index only, in accordance with the Tenant Services Authority standard lease agreement.

The rents on “intermediate” rented properties (mainly in Devon) are initially set at 80% of local market rents and are thereafter increased by the retail price index plus 1⁄2 %.

Properties classed as “temporary social housing” have rents set at target level or at some other level in agreement with the local authority in that area. Rents are increased by the retail price index plus 1⁄2 %.

If you’re not sure what type of property you pay rent to us on please contact your housing officer »

More information


If you would like more information about rent setting, please contact our finance department on 01305 216136.