How we calculate your rent
As a social landlord, we take our responsibility to provide people with affordable homes seriously. We work within Government and regulatory standards to make sure that we’re setting fair and affordable rents.
Working in our communities
Did you know we have over 66,000 residents in over 28,000 homes?
Where we work
How much rent you pay will depend on:
- your tenancy
- the size of your home
- the area where you live
As a non-profit organisation, the money we receive in rent is then used to manage and maintain homes and to repay the loans used to fund and build new, affordable homes. Every single penny we receive is invested back into customers and our properties.
We review your rent once a year in line with the terms of your tenancy agreement or lease. You’ll be notified of any changes in writing, before they happen.
Here’s some further information about how each tenancy review is calculated:
Social rent
On an annual basis, we will review the basic rent according to Government guidelines. From April 2020, all rent charges will have a maximum yearly increase of Consumer Price Index (CPI) as at September of the previous year, plus 1%. This increase does not apply to service charges, these will continue to vary based on costs.
Affordable rent
When affordable rents are due for their annual review, we apply a maximum yearly increase of Consumer Price Index (CPI) as at September of the previous year, plus 1%
London affordable rent
When London affordable rents are due for their annual review, we apply a maximum yearly increase of Consumer Price Index (CPI) as at September of the previous year, plus 1%
Intermediate market rent
In line with our regulatory funding requirements we apply a maximum yearly increase of Retail Price Index (RPI) as at September of the previous year, plus 0.5%, capped at 80% of the current market rent figure.
Market rent
When granting a new tenancy to new or existing customers, we will set a market rent in line with current market conditions at that time. During a fixed term tenancy of 2 or more years we apply a maximum % yearly increase. The % is stated in your tenancy agreement.
Shared ownership
Rents are generally increased based on the Retail Price Index (RPI) rate of inflation, as at the previous November (for pre-July 2006 build dates) or September (for post-July 2006 build dates), plus 0.5%.
If you would like any further information or you have any questions then please contact our Customer Service Centre on 01403 220440 or you can email service.centre@shgroup.org.uk
