Rent Setting Policy

Housing Services – April 2025

Purpose

Councils who hold housing stock are required to keep a ringfenced Housing Revenue Account (HRA) to record and manage income and expenditure relating to its housing landlord function. The main source of income to the HRA is rent. The rental income is used to pay for the management, maintenance, and investment in Council homes and to cover interest charges relating to HRA debt.

Woking Borough Council has recently produced a 30-year HRA Business Plan. This shows the significant financial challenge faced in meeting our housing obligations, complying with regulatory standards, and ensuring our homes are safe and well-maintained.

This policy aims to provide clarity on how the Council sets and increases rents and complies with statutory and regulatory rent setting requirements for residential properties in its Housing Revenue Account (HRA).

The purpose of the policy is to:

• Ensure the Council adheres to current government legislation and regulation when setting and agreeing rents.
• Provide a clear and consistent framework for setting and reviewing rents of all properties accounted for in the HRA and General Fund low-cost rental accommodation.
• Provide as much financial certainty for the HRA as possible.
• Maximise the income available to maintain our existing housing stock and in future, to construct and acquire new affordable homes.
• Support the viability of the 30-year HRA Business Plan.
• Provide clear guidance for tenants and stakeholders on how the Council will ensure rents remain affordable to tenants across different income groups.

Scope

The policy applies to the following properties:

• Rented residential accommodation in the HRA

The Policy does not cover:

• Ground rents and service charges for leasehold residential accommodation
• Shared Ownership accommodation
• Properties owned by Thameswey Housing Ltd
• Properties leased from Private Sector Landlords
• Bed and Breakfast accommodation
• Garages
• Shops and commercial premises
• Service Charges for HRA rented accommodation
• General fund owned temporary accommodation