How your rent is set

The Government is making sure that rents paid by tenants remain affordable and that tenants in similar properties in similar areas pay similar rents whether their landlord is a council or a housing association.

To achieve this, they set target rents that were calculated using a set formula that took into account the following: -

  • the value of your home as at a set date;
  • its size in terms of number of bedrooms;
  • average earnings in Essex; and
  • the location of your home.

Once the target rent had been calculated, we had to compare the current rent of our properties with our target rent and then introduce any increase or decrease that is needed.

To protect tenants against large rent increases, the Government also placed a limit on the increase that any tenant should face in one year of £2 per week over and above the rate of inflation. Likewise, any decreases are limited to the rate of inflation minus £2 per week.

These figures apply where the rent is calculated over a 52-week period. However, as we calculate rent over a 48-week year, the maximum increase or decrease applicable over the rate of inflation will be £2.17.

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