Why is my neighbours rent different to mine?

    Rent Increases, Why some residents pay different amounts

    We know it can feel confusing when neighbours pay slightly different rents. Here’s a simple explanation of why this can happen:

    • All social rents increase by the same percentage each year, set by Government (currently CPI + 1%).
    • The amount you pay depends on when your tenancy started. Starting rents are set using the Government’s national rent formula and the rules in place at that time.
    • Rules have changed over the years. For example, between 2016 and 2020 rents were reduced by 1% each year. This means homes let at different times may have different starting points.
    • Property differences matter. The size of your home and historic calculations also affect the starting rent.
    • When a home is re-let, the rent may be adjusted, sometimes bringing it closer to the national formula level.

    Because yearly rent increases are percentage-based, the increase is added to each person’s original starting rent. This means the weekly amount may differ, even if the percentage increase is the same for everyone.