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Rent setting

In 2002 - 2003 the Government introduced a new way of working out rents, which must be followed by Councils and other social landlords. The aim of the change is to take away some of the unfairness of the previous system. This will mean, for example, that two people living in identical properties in the same area will pay a similar rent. At the moment, this is not always the case.

As a result, the TMO will calculate your rent based on a formula made up of the following elements:

  • Property values in Kensington and Chelsea
  • Average weekly manual wages in the area
  • The number of bedrooms you have

The new formula means that 70% of your rent will be based on local earnings, and 30% on property values. To avoid making extreme changes to the rent in any one year, the formula is being implemented over a ten year period ending in 2012.

In order to make it easier to understand what you are paying for, the TMOhas separated out the costs into rent and service charges. Examples of service charges you may pay include estate cleaning, grounds maintenance and caretaking. However these service charges do not include heating, hot water or your water and sewerage charges.

The government has set 'caps and limits' to make sure tenants are protected from sudden increases. This means your rent, including service charges, will not increase by more than £2 plus inflation in any one year.

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