Social housing rents
English Housing Survey, Headline Report, 2020-21, published by the Department for Levelling Up, Housing and Communities in 2021, states:
‘Most social housing rents are calculated according to ‘rent restructuring’ policy, introduced in 2001. The overall intention of the policy was that similar properties in similar areas should have similar levels of rents. The formula calculates rents for each individual property based on 30% of the relative property values at 1999 levels, 70% on relative local earnings and the size of the property. The formula rent had been increased annually at the rate of Retail Price Index inflation at the previous September + 0.5% until 2015-16 when it was increased by CPI +1%.
‘In 2012, the Government introduced Affordable Rent as another main type of social housing rents, which can be set at up to 80% of the market rate of the property, inclusive of service charges.
‘Between 2016-17 and 2019-20, social housing rents will be reduced by 1% a year, for 4 years except from supported housing, almshouses, community land trusts and fully mutual housing co-ops which will be excepted during the first year.
‘There is also a different arrangement for rents for intermediate rent properties (which falls within the statutory definition of social housing).’
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