Rent restructuring explained
From 2002 social landlords have adopted a single approach to setting rents that is based on the same rent formula (the formula is referred to as 'rent restructuring'). This is to ensure that all social landlords' rents stay affordable, aren't confusing, reflect the size, location and condition of your home, and are based on a 'like-for-like' basis, no matter who the landlord is.
Previously, each social landlord had a different system for deciding what rents to charge.
What is rent restructuring?
The new formula is based on the property size (the number of bedrooms), the average earnings in your local area, and the size, location and condition of your home.
Will rent restructuring affect me?
Yes. The rent formula affects all L&Q residents, except those living in shared ownership homes and temporary accommodation.
Will my rent go up?
It depends on where you live. Because your rent is based on the property value of your home and the average earnings for the area where you live, where your home is located will determine whether rents go up or not. The higher the property value of your home and the higher the earnings of the people in your area, the higher the restructured rent is - likewise if earnings and property values in your area are low, the restructured rent is lower. How this will affect you depends on where you live and the average earnings of your area.
How much will my rent change?
To protect residents from large rent increases, the government has limited any rent increase to no more than the rate of inflation plus 0.5%; plus £2.00 per week. If it decreases, any reduction is limited to the rate of inflation plus 0.5%, minus £2.00.
Comments
From: liza wicks May 9, 2006
why is my rent diffrent to my neighbours and others in the same area i live in broadfield my rent is £104 others only pay £82
Reply from: L&Q
Thank you for the enquiry about the difference in the rents for similar homes in Broadfields. We fully understand why you are asking. You and other residents might be interested to know and there are similar situations where rents differ elsewhere for L&Q homes as well as for other housing associations and councils.
The main reason is due to the type of tenancy granted at the time the resident moved in. This could not legally be altered retrospectively at a later date when a new type of tenancy, with higher rents, was introduced.
The present government, a few years ago, recognised the inconsistency and introduced rent restructuring to address this anomaly. To soften the blow of the increase in rents to the new level, landlords are only permitted to put them up by a certain amount each year until they reach the new level. At this time all rents will be similar. Details of the scheme are explained on the residentsonline web site.
The above shows the likely reason for a difference in the rents for similar homes in an area. If you want to specifically check the position with your rent please contact your tenancy services officer.
Have Your Say
L&Q Group, Osborn House, Osborn Terrace, London SE3 9DR
Tel: +44 (0)20 8852 9181 Fax: +44 (0)20 8557 2191