Rent Setting
The Council is responsible for setting the level of rent that it charges to its tenants. The actual level of the rents is determined by how much the Council needs to spend on services to its tenants.
Rent is paid into what is termed 'The Housing Revenue Account' and this, along with small amounts of Government subsidy, is what pays for the services that tenants receive. It also covers other items such as paying the cost of borrowing for the original build of that property and for capital improvements. The rent that Council tenants pay does not contribute to other services that the Council provides, nor is it subsidised by the Council Tax payments.
How is your rent calculated
Each year the Council works out how much money it needs to run the housing service and decides where this money can be raised from.
The Government has an influence on this process by setting targets for spending and for rent levels. From 2002 the Government introduced a new way of setting rents for council homes based on their value. All Councils must now set their rents with a view to meeting the target rents set by the Government by 2010. The Council therefore has very limited control over the rents tenants are asked to pay.
Service Charges
Some tenants may have other charges to pay as part of their total rent. These will usually be for heating in those flats where heat or hot water comes from a shared boiler, or for warden services in sheltered accommodation.
If you are not sure why you have additional charges please contact your Housing Management Officer.