Rent levels - how rent charges are set
How your rent is set
The rent for each individual property will be changed from April 2014 in line with the national rent formula introduced by the Government in 2002. The formula takes into account the average earnings for the West Midlands, the number of bedrooms in the property and the valuation of that property at 1999 prices. The rent charged from April 2014 will increase the average annual rent levels for 2014/15 by 5.80 per cent when compared with the average charged for 2013/14. This is the average across the city and some tenants may see a slightly higher or slightly lower increase than this average.
How do we decide how much to increase your rent by?
Any rent increases use the Retail Price Index (RPI) as a factor in setting the increase. The RPI measures the rate of inflation in the UK, and rent increases are set using the RPI that applied in the previous September. This is 3.2% for 2014/15.
We also limit rent increases so that an increase in the annual rent charged cannot be higher than RPI + 0.5% + £2 per week.
How your service charge levels are set
Service Charges are set in line with national guidelines that say they have to be separated from the rent for your property and fully cover the costs of providing that particular service. A range of service charges (but not all) are payable depending on the services provided to tenants and may include concierge, cleaning communal lighting and sheltered accommodation.
The council put into place a policy of recovering the full service costs over a five-year period from October 2002 to October 2007. This is now complete and charges are now made for the actual cost of the service. Service charges will increase by 1.75 per cent from April 2014 to reflect the increasing costs of service delivery. The majoy exception to this is the Concierge & Night-time Security Service that is subject to a fundamental review and will be the subject of a separate report to a future cabinet meeting (service charges will be kept at 2013/14 levels for this service).
All service charges are separately calculated for each district to reflect local service costs and will also be levied over a 48 week cycle alongside the weekly rent.
PO Box 16564
0121 675 2006