Charnwood Borough Council - Leading in Leicestershire

In April 2000, the government set out its proposals for restructuring rents in the social Housing sector. At Charnwood, we adopted this dramatic change in April 2003.

What does this mean? Well, it means that the majority of Council rents throughout the country are now set using the same formula. All rent increases, with effect from April 2003, have been determined using these guidelines. The government’s objectives for increasing rents in this manner are:

• To ensure that rents remain affordable in the long term
• To make rents fairer and less confusing for tenants
• To reduce differences in rents between Housing Associations and Local Authorities

This new formula is complicated and is different for every council property and includes that property's individual valuation, prior year’s rent, local average wage and the rate of inflation. The formula, along with a worked example can be found at:

• Rent Setting Example 2005-2006 (PDF Document 6.33 Kb.)

Service Charges, such as Heating and Communal Facilities Charge, are set to cover the costs involved in supplying that specific service. They are approved by Cabinet and then full Council.

Rent and Service Charge increases are determined in January each year, and become effective from the first Monday in April.