|
|
|
From April 2002 the Government required all housing associations to use a single method of setting rents based on a rent "formula". These "formula rents" are also known as "target rents". This means that the rent for your home, and for all housing association and local authority properties in the area, will reflect the value of the property and the average income of people living in Cornwall and the Isles of Scilly. The Government told housing associations to start moving their rents towards the new formula rents from April 2002 so that by the end of 10 years the rents are within 5% of the new target rents. Housing associations have 10 years to implement the change in order to try and avoid any sudden movements in rent levels. The Government made this change because it wanted housing association rents to:
The rent for your home will be based on the value of your property and local average incomes. The higher your property value, and the higher the income level, the higher the new rent will be. The amount of rent you will be paying in 10 years time will depend on the value of your property, local average incomes and the rate of inflation. The rate of inflation will vary over the 10-year period and it is therefore impossible to give any firm guarantee that your rent will be a specific figure in 10 years time. However, we are able to provide an estimate to any tenant who requires one. To protect tenants from large rent increases, the Government has said that no rent will rise by more than the rate of inflation plus 0.5% plus £2 a week in any single year. For example, if you are paying a rent of £61.25 and inflation was 2%, the most that your rent would be allowed to increase would be: 2.5% of £61.25 + £2 = £3.53 a week. The Association has calculated that in 10 years time its rents will be within 5% of the Governments new target rents. Our rents will not increase by more than the maximum figure set by the Government. We will do all that we can to keep rent increases to a minimum. It is likely that rents will increase by at least the rate of inflation each year but this will depend on how much income the Association needs to meet its commitments. It will also vary for each property according to how the current rent we are charging compares to the Government's target rent.
|
Send mail to
info@crha.org.uk with
questions or comments about this web site.
|