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How is my rent calculated? | Sandwell Council

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How is my rent calculated?

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In April 2002 the Government introduced the national rent formula for council homes.

 

Most rents are set using the national rent formula which takes into account:

  • The value of the property
  • The number of bedrooms
  • Average earnings in the area compared to national average earnings
  • Inflation

Some council rents are set as ‘affordable rent’, and rents are based on up to 80% of local market rents. Our new build homes may have affordable rents.

Annual Rent Review

All housing rents and services charges, such as cleaning, caretaking, CCTV, etc which are shared services, are subject to an annual review in line with inflation.

The annual rent and service charges review sets out the rent increase for the next financial year and is subject to Cabinet approval.

Following cabinet approval, tenants and leaseholders will be notified of any increases in rent as part of the annual review process.