What is Rent?

What is Rent?
Rent is the amount you must pay to live in your home. It is a charge that you must pay on time. When you signed your tenancy agreement you made a legally binding agreement to pay your rent, which enables us to: 

• Carry out repairs to your home & estate
• Carry out major works and improvements to your home and estate
• Provide a housing management service to our residents. 

How is my Rent charged?
The rent year normally begins on the first Monday in April of each year. This requirement is driven by our rent computer system, because all new tenancies commence on a Monday. For a normal rent year you will have 52 weeks of rent, charged over a 50 week period. This allows for the Christmas “pre-paid” period of two weeks. This year however the rent year started on Monday 8th June 2009 and ends on Sunday 4th April 2010. 

• To calculate your monthly rent, multiply your weekly rent by 50 weeks and divide by 12.
• To calculate your fortnightly rent this year, multiply your weekly rent by 50, and divide it by 25.

N.B It is incorrect to calculate your monthly rent by 4 weeks to establish your monthly rent. This is because some months in the year have five calendar weeks. Calculating your rent in this way will distort your payment amount and periods when your rent is due.

Why does my Rent change every year?
Rent changes due to inflation whilst inline with government policies, to harmonise rents across all social housing. In April 2002, the government introduced a new rent setting process for calculating rent called “Target Rent”. The aim of this initiative was to charge a similar rent for similar type properties nationally.

How is my rent calculated?
Your rent is calculated using a formula that has been provided by Central Government and looks at: 

• The value of the property you live in compared against the national average value of similar types of rented homes
• Local average earnings compared against the national average earnings
• Property size