In 2003, the government decided that councils and all other social landlords (such as housing associations) needed to work out their rent charges in the same way. So the council sets your rent based on:
- average manual wages in the area
- property values in the area
- the number of bedrooms in your home
This formula means that, over time, two tenants living in identical properties on the same estate should be paying the same rent, whether the landlord is the council or a housing association.
The local earnings part of the formula compares the average manual wage in East Sussex with wages elsewhere in the country.
Brighton & Hove City Council has around 12,000 homes and it’s not possible to value each one individually. We have identified almost 340 typical properties (called ‘beacons’) within each area of the city and these have been valued by local surveyors.
These beacon homes have been used to give a value to every other property that is of the same size, type and location. All council properties have been valued at 1999 prices. These valuations are not the same as the ones used for Right to Buy applications.
Number of bedrooms
The number of bedrooms in your home is also used to calculate the rent. The more bedrooms there are, the more the rent will be.
What will happen to rent because of this policy change?
Rent levels will change. Some rents will increase by more than inflation, others will increase by less than inflation.
However, the government has stated that no-one’s rent will increase by more than the preceding September’s inflation rate plus 0.5% plus £2 per week.
If you have any queries about rent restructuring, please contact your local housing office.