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council flat- this years rent going UP by 5.5%?!
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brightonman123
Posts: 8,535 Forumite
I thought the general trend was downwards?
No doubt the coucil will be negotiating with suppiers (cleaners, gardeners etc) to lower their prices..
No doubt the coucil will be negotiating with suppiers (cleaners, gardeners etc) to lower their prices..
Long time away from MSE, been dealing real life stuff..
Sometimes seen lurking on the compers forum :-)
Sometimes seen lurking on the compers forum :-)
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Your rent increase was based on the RPI for September 2008, which was alot higher back then.
Keep an eye on the RPI in Sept 2009 for a clue as to what your increase might be in April 2010, I suspect it won't be as high as this one.......0 -
My rent has been going up by about 5% every year for years, without fluctuations on the rises. So I don't think they have been following the RPI any time, years ago I believe the government capped the maximun rent rise for council properties at no more than 5%. It might have changed since then.0
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WARNING – this post is very boring, but is an attempt to explain rent increases !!
The rent the council charge is based on a government calculation with the end goal of equalising rents charged between local authority and housing association tenants. This is referred to as rent convergence or rent restructuring. This is a simplified version of the process:
Firstly – take your current rent.
Secondly - work out a ‘target rent’ this is set by a government formula and takes account of a range of issues – the value of the property, its size, local earnings, average rent across the country etc etc.
Thirdly – Increase the target rent at a rate set by government.
Fourthly – the government want convergence to happen by, I think 2015 (this target keeps changing). So work out the difference between the current rent and the target rent and divide by the number of years before 2015 (ie 6). This should be your ‘unconstrained’ rent increase
Fifthly – there is a maximum increase of RPI plus 0.5% plus £2. (from memory) If the rent increase is greater than this, then the rent is capped at this level. (Note RPI is the previous September)
So as you can see the actual rent increase is not the fault of the local council but in effect is set by following the government formula. This year average rent increases nationally average at about 7.2% . Spark is right that the government has in the past capped increases at 5% this happened a couple of years ago but is not the norm.
You should also be aware that under the national housing subsidy system a large slice of council rents goes to government. This year the government will profit by about £200million from the scheme. The OP suggested negotiations with suppliers may help – negotiations with Government would make more difference. !0 -
The student loan interest rate is going down to 2%................................I have put my clock back....... Kcolc ym0
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bet its still cheaper than renting privately :P.0
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