Different types of rent
We offer a variety of rental options (not just social rent). The type of rent which applies to you was agreed at the start of your tenancy (and will be stated in your tenancy agreement).
Market rent and associated service charges are reviewed on an annual basis, based on the residential lettings estimate for a property, which considers property size, condition and location.
Rent valuations are independently assessed in accordance with the Royal Institute of Chartered Surveyors. OVH is able to increase or decrease market rents, to reflect market conditions and demand.
Affordable rent is set annually, at no more than 80% of the market rent value (inclusive of service charges) at the time the property was first let.
Where an affordable rent is valued above the Local Housing Allowance (LHA) rate and where local market conditions demonstrate demand, we reserve the right to set the rent above the LHA rate.
Like social rent, affordable rents will reduce by 1% per annum until 2020.
Intermediate rent and associated service charges are reviewed on an annual basis, based on 80% of the average gross market rent.
Those who have a secure tenancy (pre 15 January 1989) are likely to be paying a fair rent, which is set and registered every two years by the Valuation Office Agency (VOA). Once the rent is registered, this is the maximum amount that we can charge until it’s reviewed or cancelled.
From 2016 to April 2019 we will review rents annually, and if applicable, we will reduce your rent by 1% per annum.
Shared ownership rent
Details of how your shared ownership rent is calculated are included in your lease.
Initial rents are set at no more than 2.75% of the value of the unsold equity (and will not exceed 3% of the capital value of the unsold equity at the point of sale).
Annual increases to rent will be limited to the Retail Price Index (RPI) figure plus 0.5%. If RPI is nil or negative the maximum rent increase will be limited to 0.5%.
Rent to buy rent
Rent to Buy homes are let at the Intermediate Rent rate – see above for details.
Rents are increased annually, with the maximum increase set at Consumer Price Index (taken as at September of the previous year) plus 1%.