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How is rent set?

How is rent set?


Landlords in different areas all use different ways of setting rent, often
making it confusing and unfair for tenants. In response the government
introduced a new system where all social landlords in England set their
rents in the same way based on a single formula called ‘formula rents’.

Fair and affordable rents brochure - PDF
Your rent and service charges explained - PDF

The formula to set rents is based on three main factors: the value of
the property, the number of bedrooms in the property and local earnings.
The value of the property that you live in is decided by using similar
sample properties from across the borough. Independent valuers
surveyed these properties.

Ealing Council decided to introduce this formula in April 2002.
Because the new rent may be different from your rent now, social
landlords have at least 10 years to gradually introduce the new system
and any rent changes (up or down) should be gradual.  To make sure
tenants don’t face large increases, the government has said that in any
one year a tenant’s weekly rent cannot go up by more than the rate of
inflation plus 0.5%, plus £2.

The government's formula only applies to the rent you pay for your home.
Your council can also charge a separate service charge for services
such as cleaning, shared areas, or gardening.
Ealing Council charges rent and services charges separately.

The separation of rent from service charges does not affect any
entitlement you may have to a housing benefit.


Examples of what your rent pays for:

Examples of what your service charges pay for:

If you would like more details on rent and service charges,
please contact us.