The Council is responsible for setting the level of rent that it charges to its tenants.
Recently, Central Government has introduced a new approach to setting rents such that Housing Associations and Councils would have similar levels of rent for similar properties. This is to eliminate discrepancies that have occurred across the country.
The actual level of the rents is determined by how much the Council needs to spend on services to its tenants.
Rent is paid into what is termed 'The Housing Revenue Account' and this, along with small amounts of Government subsidy, is what pays for the services that tenants receive. It also covers other items such as paying the cost of borrowing for the original build of that property and for capital improvements. The rent that Council tenants pay does not contribute to other services that the Council provides, nor is it subsidised by the Council Tax payments.
Each year the Council considers carefully how much money it will need to raise the following year from rents and subsidies in order to carry out its programmes of repair and maintenance.
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