Rent setting policy

Read the summary of the policy on the page below, or download the full policy document:

Rent Setting Policy (205 KiB)

Rent setting policy quick guide

This summary provides an overview of Cheltenham Borough Council’s rent setting policy.

What is the purpose of the policy?

The policy explains how we set and review rents for our housing stock, ensuring affordability for tenants whilst maintaining property quality.

What are the different types of rent?

• Social rent: These rents are based on a government formula that takes account of property value, size and local income. These rents are subject to an annual increase of CPI (consumer price index) plus 1%
• Affordable rent: These rents can be up to 80% of market rent, including service charges. These rents can increase, stay the same or reduce year on year. We will carry out checks on tenants offered affordable rent properties to make sure they can keep up with payments

Service charges

Additional costs for services like cleaning and lighting are applied for some properties and charged with the rent. These are reviewed annually and must be transparent and reasonable.

Rent collection

Rent is charged weekly throughout the year but there are four rent free weeks. Payment is expected in advance. Support is available for tenants facing financial difficulties.

Garage rents

Rents for garages are charged monthly and reviewed annually. VAT applies to non-tenants.

Annual review

Rent and service charges are reviewed annually, with new charges starting each April. Tenants receive four weeks’ notice of any changes.