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 Shared Ownership 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.
If you want to see the formula applied in calculating the increase for your property you can look at our rent increase table below.
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.
Social rented properties
From April 2020 social rented properties will increase annually by CPI + 1%.
Royal Free residents
Royal Free residents are subject to rent increases every year in April. This increase is stipulated in the contract we have with the NHS trust.
If you would like us to explain further about our rent setting policy, or have any other general questions about your rent, please contact us at email@example.com.