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How We Set Your Rent

Please note: If you are a home owner, a resident in an almshouse, or a tenant on a 6 months Assured Shorthold Tenancy who has paid a deposit, this policy/ section may not apply to you.


Tenants are always given four weeks notice in writing of any changes in their rent. This means that tenants will receive notice of their rent and service charge increase by the end of the last week in February.
NCHA has followed the government’s rent restructuring policy since 2002. This policy aims to reduce the difference between housing association and local authority rents.
If you have a Secure Tenancy your rent is registered by the Rent Service once every two years on the anniversary of the tenancy.

Secure rents are set by the Rent Service based on market rents for similar properties in the area. The rent set by the Rent Service will also include any service charge that applies to the property and cannot be exceeded by NCHA.

Where the increase in rent set by the Rent Service is very large, NCHA will limit the increase in any one year to the formula applied to Assured Tenancies and may apply an increase in the second year of the rent registration. For more information about Secure Rents, see the Valuation Office website here.
Target Rents are calculated using a formula that takes into account the value of a property as it would have been in 1999 and the relative level of local earnings.
Rents will therefore be lower in areas where property values and earnings are low and higher in areas where property values and earnings are higher.

A bedroom factor is also included to ensure that larger properties have a higher rent than smaller properties.Finally, the ‘Target Rent’ rules allow NCHA to increase rents to 5% above the target rent level. The majority of NCHA rents are now at Target Rent levels plus 5%, with a small number of rents still in the process of increasing to the target rent level.
All rents, including the target rent levels are increased each year in line with the September RPI (Retail Prices Index), which for September 2013 was 3.2%, plus 0.5%. Where the rent for a property is less than the Target Rent plus 0.5%, the rules allow NCHA to increase the rent by up to a further £2.00 per week. The total rent increase for some tenants could therefore be as high at 3.7% plus £2.00.

David Richardson, Director of Housing commented
:

“This year the September Retail Prices Index was 3.2%. The rent increase formula means that rents will increase by 3.7% in April 2014 plus up to £2.00 per week where rents are still below the target rent.
If your rent is already paid in full by Housing Benefit, the increase in rent will be fully covered and if you are on part Housing Benefit, you will pay a proportion of the rent increase from April 2014. Your rent is used to pay for repairs, major improvements such as new kitchens, bathrooms, interest payments and the costs of providing valuable services such as dealing with anti-social behaviour, encouraging resident involvement and managing the communal areas around your home.
NCHA will also be investing in schemes to help tenants in financial hardship: for example we will work closely with credit unions to provide easy ways for tenants to build up their savings and manage their money. In addition, our Income Team provide advice to people with multiple debts on budgeting to pay for their priority debts such as rent.
I would encourage anyone who may feel that they are struggling to pay their bills to contact our Income Team for assistance on 0800 013 8555.”