Customer Services
Rent convergence information
Since 2002 your rent has been moving towards a target set by the government over a period of up to 10 years. To find out what this means for you, please read on.
What is rent convergence?
We set the ‘Net Rent’ element of your rent according to a formula set by the Government, which calculates a “target rent” for every home. This is based on the value of the property, the size of the property and average earnings in the area.
- If your Net Rent is currently below the target your rent will increase this year by inflation as at September the previous year plus ½% plus £2 per week, provided this does not take your Net Rent above the target rent level.
- If your Net Rent is at the target your yearly increase will be inflation as at September the previous year plus ½%
- If your Net Rent is currently above the target your rent will not increase this year.
Will rent restructuring affect me?
Yes. The rent formula affects all Circle 33 tenants, except those living in temporary accommodation or shared ownership homes.
How much will my rent change?
To protect residents from large and unmanageable rent increases, the government has limited any rent increase to no more than the rate of inflation as at September the previous year plus ½% plus £2.00 per week. If it decreases, any reduction is limited to the same rate of inflation plus ½% minus £2.00.
