Rent setting policy
Rent setting is based on government guidance on the rent standard issued in 2020 which can be found on the Ministry of Housing, Communities and Local Government (MHCLG) website.
Since 2001, rents for properties let at ‘social rent’ (which constitute a majority of rented social housing properties) have been set based on a formula set by the Government. This creates a ‘formula rent’ for each property, which is calculated based on the relative value of the property, relative local income levels, and the size of the property.
From 1 April 2020 The Government has permitted annual rent increases on both social rent and affordable rent properties of up to CPI plus 1 percentage point from 2020, for a period of at least five years
RBK follows Government guidance when setting the rents for our properties and you can find the guidance for this on the Government website. https://www.gov.uk/government/publications/rents-guidance
Existing Social Tenants
The rents will increase by a maximum CPI + 1% in line with the Government's new 5 year rent settlement for the period 2020/21 - 2024/25.
Rent Rebate Subsidy Limitation Rule
The current policy for new tenants moving into void Council properties is that their starting rents will be based on the rent restructuring formula rent calculated using Government methodology.
In addition to their rent, tenants may also pay service charges. Rents are generally taken to include all charges associated with the occupation of a property, such as maintenance and general housing management services. Service charges usually reflect additional services which may not be provided to every tenant, or which may be connected with communal facilities rather than being particular to the occupation of a dwelling. Service charges are subject to separate legal requirements and are limited to covering the cost of providing the services.
Service Charges are not covered by the same Government guidelines as rent however the guidelines are that service charges should be set on a reasonable and transparent basis and should reflect the service provided. Increases should be limited to CPI +1%, unless new or extended services are introduced. Where new or extended services are introduced, and an additional charge may need to be made, we aim to consult with our tenants.
Annual Rent Review
Kingston Council will give tenants 4 weeks written notice of any change in the level of rent which normally will be the first Monday in April, and rent increases will be applied in line with Section 13(2) of the Housing Act 198
Exceptions to the policy
This policy does not apply to certain categories of low cost rental accommodation.