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New rent structure - effective from 6 April 2020

Guidance for tenants

In November 2019, we approved the introduction of a revised rent structure following an extensive consultation, which included issuing a survey to 36,549 tenants.

The revised rent structure incorporates the following key principles:

  • The policy should be straightforward to maintain, easily understood by the tenants and staff, and not complicated by attributes that can change over time.

  • Tenants should pay the same rent for the same house type and size irrespective of where the property is located in North Lanarkshire.

  • The system should be fair, equitable, consistently applied and supported by tenants.

  • The new scheme should ensure that sufficient income continues to be generated to fund the Housing Revenue Account (HRA).

The rent charges are now based solely on the property size and property type.

The process was not about:

  • The annual rent increase (which covers the inflationary costs incurred in providing the full range of housing services).

  • Increasing the overall money we collect in rents.

  • Making everyone pay more.

Comparing 2019/2020 rent levels before and after setting the new rent structure, rents for smaller properties tend to reduce and for larger properties to increase.

The new rent structure for both our standard houses and our new build houses for 2020-21 (new build properties will continue to have a 20% premium added to the rent) can be viewed below:

These are the new rents that have been determined for our properties following the rent structure.

Not all tenants will be charged the rent figures that are shown above as the rent structure is being phased in over a period of seven years. In year 1, 2020-21, 38% of tenants will be fully matched onto the new rents.

If, as a tenant, you are currently paying more rent than is shown for the property size and type, you are in the process of having your rent charge reduced and will have experienced an increase in your rent charge from last year of less than the annual rent increase of 5%.

If, as a tenant, you are currently paying less rent than is shown for your property size and type, you are in the process of having your rent charge increased and will have experienced an increase in your rent charge from last year of more than the annual rent increase of 5%.

All of the above applies to the new build rents.

To ensure a gradual transition towards the new rent structure, we decided to phase in the implementation of the new structure. The aim is to minimise the impact on tenants whose rent will increase. The implementation period will be for up to seven years, with 2020-21 being year one.

Each year the rent charge to tenants will increase by the approved annual increase. The property size/type you live in will determine whether your rent will be adjusted by a further increase or decrease of up to £2.These adjustment will continue to be applied until the rent you pay matches the rent charge for your property.

Page last updated:
03 Nov 2020

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