Tenant Rent and Service Charges Policy

2.1 The council will follow government policy and guidance on the setting of rent charges, and adopts the following policy principles in relation to the setting of rent:

a) Rents will be always be calculated in line with the relevant legislation (as outlined in this policy summary), including applying rent convergence. A summary of the Government rent policy for 2026/27 onwards is as follows:

• 2026/27 CPI + 1% for target and actual rent
• 2027/28 CPI + 1% for target and actual rent Where actual rent is not at target rent an additional £1 per week on actual rent, with increases capped at target rent.
• 2028/29 CPI + 1% for target and actual rent Where actual rent is not at target rent an additional £2 per week on actual rent, with increases capped at target rent. This will be in place until full convergence is reached.

b) New properties will be added to the register in a timely fashion and rents will be calculated in line with the relevant legislation (as outlined in this policy summary).

c) Rent is charged on a weekly basis and charged every Monday in advance (ie the charge is applied to the account on the Monday to cover that Monday until the coming Sunday). If for any reason a tenancy starts on a day other than a Monday, the first weeks rent will be charged on a pro rata basis.

d) Rent increases will be applied from the first Monday in April. Tenants will be given a minimum of 28 days notice before the increase takes effect.

e) Rent increases will take effect from the first Monday. When a property becomes void, the new tenants rent will be set at the formula rent (also known as target rent)

f) Mutual exchanges will be undertaken at existing rent (also known as current rent). Tenants will not be moved to target rent as part of the mutual exchange.

g) Where major alterations are to be undertaken to properties with existing tenants, agreement to alter the rent post alteration will be obtained in advance of the works commencing.

Where a tenant is in situ and an adaptation or extension has resulted in the property being either increased or reduced in size (for example an additional bedroom), we may revalue the property due to the change, we will then set the new rent charge in accordance with the formula rent guidelines, with the appropriate rent increase or decrease being applied. This is only likely to arise in exceptional circumstances, as ‘major works’ do not include normal stock management activity such as repairs, maintenance or updating of properties (for example, fitting new kitchens or bathrooms). Major structural alterations (such as adding an extra room or extension) would be an example of ‘major works’ for the purposes of this paragraph. This will be managed on a case by case basis.

h) A Tenant Rent and Service Charge Procedure will be maintained by the Income and Home Ownership Manager and the Assistant Director (Finance). The rent database will be maintained by the Income and Home Ownership Team. Rent calculations will be supported by the Finance team. Appropriate checks, controls and segregation of duties and responsibilities will be outlined in the procedure.

i) Garages, unless integral to the property, will not form part of the tenants rent and fees for these are set as part of the Councils budget.

j) Staff calculating and administering rents will receive appropriate training.