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How your rent is set | How we calculate your rent and charges | Birmingham City Council

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How your rent is set

Rent is charged on all properties, and covers the cost of things like repairs, housing management and capital improvements and it is not dependent on the costs of services provided.

For existing tenants, the rent charges will be increased by 2.7% from 6 April 2020. In October 2017, the government announced its intention to set a long term rent deal for local authority landlords and housing associations from 2020/21 onwards.

The long term rent deal which was confirmed by the Policy statement on rents for social housing (February 2019), which allows local authority landlords to increase rents on both social and affordable rent properties on an annual basis by up to CPI+1% from 2020, for a period of at least 5 years.

As a result of this change, the average rent for council tenancies will be around £89.43 per week. This represents the weekly rent that is payable over 48 weeks and takes into account the 4 weeks rent payment holidays, 2 weeks in December 2020 and 2 weeks in March 2021.

The average weekly rent (£89.43 per week over 48 weeks) is equivalent to an average rent over 52 weeks of £82.33 per week.

For new tenants, rent charges will be set at 'formula rents' as set out in the Government publication 'Guidance on Rents for Social Housing' as published in May 2014.