Rent and Service Charge Setting Policy

4.1       

The council sets rents for residential accommodation in the HRA in accordance with the Policy Statement on Rents for Social Housing issued by the government and the Rent Standard issued by the Regulator of Social Housing (RSH).

4.2     

All existing social rented properties that become vacant and available for re-let will be let at formula rent (see section 5 of the policy).

4.3       

Affordable rents will be charged at 80% of the market rental value for the property. This includes all service charges. The council will keep rent levels under review to ensure they remain affordable for people living in the borough.

4.4       

Rent and service charge increases (where applicable) will apply from the first Monday in April each year. Tenants will be given at least 28 days' notice before a rent or service charge increase applies.

4.5    

The council reserves the right to make changes to service charges during the financial year where there are substantial cost variations subject to the council's constitutional decision making. 

4.6       

Rent and service charges will be calculated over 52 weeks and collected over 50 weeks with two rent-free weeks. Where there are 53 Mondays in the financial year, the rent will then be collected over 51 weeks. Customers will be advised at the start of each financial year which two weeks will be rent free.

4.7          

The council will enter into agreements with the Secretary of State and Homes England to build new homes for Affordable rent. The council reserves the right to charge a formula rent plus rent flexibility in line with the Rent Standard together with applicable service charges where it is more economically viable to do so.

4.8          

The council does not charge higher rents for social tenants with a household income of above £60,000 despite the government rent policy allowing this (see section 6.12). No cost-efficient or effective system currently exists for councils to ascertain the true household income of existing tenants. However, for prospective new tenants, Gateshead Council's Allocations Policy requires proof of income and has a maximum income threshold of £50,000.