Rent Restructuring
Who has valued the properties?
Our own in-house qualified Valuers.
When were the properties valued?
During the period of September 2001 to January 2002. However,
values are deflated back to January 1999 - this is laid down in guidance documents
from the Government.
Why January 1999?
To be consistent with timing of original consultation for Housing
Green Paper. This was also a relatively stable time for valuations, especially
comparisons between London and the rest of the country.
Was every property valued?
Not individually although every property has been given a value.
This is achieved by the approved method used under Resource Accounting. This
was undertaken in 2000.
The principle used is as follows-
Asset Groups, e.g. Taunton, Wellington, Rural Areas, Difficult
to Let.
Each Asset Group has Beacon properties, e.g. representative of
all types such as 3 bed semi, 2 bed semi, 2 bed flat (first floor).
Beacon Variant - Each Beacon has a number of variants to reflect
location, construction, central heating, modernised internal facilities, etc.
Purpose (Convergence with RSL's)
This does not mean average rents in LA's will equal RSL's. It
does however, mean two neighbouring properties of the same size and value would
be expected to have very similar rents regardless of whether they are owned
by LA or RSL.
How will this be achieved?
Over a ten year period LA rents will rise slightly faster than
RSL.
Service Charges
Further guidance is expected soon as to how these will be administered
over and above the 'net' rent for each property. For things such as - repairs
and maintenance for communal areas, insurance cost, grounds maintenance, etc.
Protection for tenants!
As stated, rents will not rise in any one year by more than the
rate of inflation at September plus .5% plus £2 per week. This is why
it will take 10 years to fully implement.
Rent Calculation
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Example - Consider a 3 bedroom property for which
the value is £60,000 in January 1999.
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Average LA rent in April 2000
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£45.60 per week
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Average earnings in Somerset
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£299.70 per week
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National average earnings
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£316.40 per week
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Bedroom weight
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1.05
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National average LA property value in January 1999§
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£41,350
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70% of sector - average rent
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70% x 45.60 = £31.92
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Multiplied by relative County Earnings
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x £299.70/£316.40 = £30.24
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Multiplied by bedroom weight
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x 1.05 = £31.75 sub total
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30% of sector - average rent
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30% x 45.60 = £13.68
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Multiplied by relative property value
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x £60,000/£41.350 = £19.85 sub total
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Adding together the sub totals
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£31.75 + £19.85 = £51.60 total
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Therefore, the property has a target rent in April 2000
of £51.60
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WHO TO CONTACT IF YOU REQUIRE FURTHER INFORMATION
The Council's Housing Advice Centre at: The Deane House, Belvedere Road, Taunton,
TA1 1HE.
Tel: 01823 356356.
Opening hours are:-
Monday to Thursday - 8.30am - 5.00pm (interviews 9.00am - 4.30pm)
Friday - 8.30am - 4.30pm (interviews 9.00am - 4.00pm)
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