Each year we increase the rents on our homes on the basis of a specific formula. This varies depending on the type of property you live in and where you live.
Each month the government announces the Retail Price Index (RPI) — also known as the headline rate of inflation — which shows the percentage change in the price of goods and services over the past 12 months. The government takes a ‘shopping basket’ of around 700 goods and services on which people typically spend money. This includes food, furniture, transport and housing costs. From this comes an average price, which is called the RPI. That price is compared to the price of the same goods a year earlier to show the annual rise in RPI.
We use the RPI as part of a formula to calculate rent increase levels for our homes, which happen each April.
Leases have slightly different formulas in them depending on where you live. This is mainly because of formulas our regulator has given us to use.
You can see a spreadsheet which shows the formula that was applied to calculate the rent increase for your property.
For Intermediate Rent properties the Consumer Price Index (CPI) is used, rather than RPI, to calculate rent increase levels. CPI is similar to RPI in that it is a measure of inflation, announced each month. However, it includes slightly different items and is calculated in a different way.
The formula we use for rent increases on our Intermediate Rent homes is September CPI + 1%. This rent increase happens every April.
Royal Free residents
Royal Free residents are subject to rent increase every year in April. This increase is stipulated in the contract we have with the NHS trust.
Until 2020 General Needs properties are not subject to any rent increase. From 2020 which they will increase annually by CPI + 1%.
If you would like us to explain further about our rent setting policy, or have any other general questions about your rent, then please contact us at email@example.com.