a
a
a
How is rent set?

How is rent set?


Landlords in different areas use to 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’.

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

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.

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.