There are two types of social tenancy rents: assured rent and fair rent. Read more about how these rents are set. In both cases, the total amount you pay is made up of rent plus any service charges, if applicable.
Changes to your rent
When setting a fair rent for new lets, we take into account two factors. This first is the target rent for your home. As with assured rents, the target rent is calculated against a government formula, which is based on things like average earnings and the value of the property. The second factor is the rent level set by the Valuation Office Agency (VOA), known as the Registered Fair Rent. We will set the rent at the lower of these two factors.
Every two years we ask the VOA to review the rent level for your property.
The 2.7% increase will apply to your current rent only if the rent set by the VOA is above the target rent for your property. This means that if the registered fair rent is below the target rent, your rent will stay the same and not receive a 2.7% increase.
Service charges and personal service charges are not included in the calculation of the new rent and may increase, decrease or stay the same.
If your rent is reviewed at a different time in the year, other than April, the 2.7% increase will still apply but from the date your rent is due for a rent change.
For more information you can contact the VOA by telephoning 0300 0501 501.
Examples
An example of a rent review on a Fair rent may look as follows:
Example 1 – Where the VOA registered rent level is below the target rent, your rent will stay the same and not receive a 2.7% increase.
A one bedroom property has the following factors:
- Rent = £130.00
- VOA Valuation = £135.00
- Target rent = £141.43
Example |
Before review |
Annual review |
After review |
Rent |
£130.00 |
2.7% increase will not be applied |
£130.00 |
Service charge |
£14.50 |
+2% = 0.79 |
£14.79 |
Total weekly rent |
£144.50 |
- |
£144.79 |
Example 2 – Where the VOA registered rent level is above the target rent, the 2.7% increase will apply to your current rent.
A one bedroom property has the following factors:
- Rent = £150.00
- VOA Valuation = £152.00
- Target rent = £150.00
Example |
Before review |
Annual review |
After review |
Rent |
£150.00 |
+2.7% = £4.05 |
£154.05 |
Service charge |
£20.00 |
+2% = 0.40 |
£20.40 |
Total weekly rent |
£170.00 |
Increase £4.45 |
£174.45 |
Note: The examples above are only for illustration purposes. Your actual weekly or monthly rent and service charge may be different.