A New Approach: "People pay the rent their household can afford!"
Here's how it works:
All the homes are built to the same standard.
All the tenants have the same rights & quality of service.
People pay a rent based on their household income.
Rents based on household income
For example, if two people live together and the total of both their incomes is between:
£0 and £25,000 per year, they pay the same rent as Council tenants.
£25,000 to £35,000 per year, they pay £750 per month* for the flat, whether it's 1, 2, 3, or 4 bedrooms.
£35,000 to £45,000 per year, they pay £1,000 per month* for the flat (1, 2, 3, or 4 bedrooms).
£45,000 to £55,000 per year, they pay £1,250 per month* for the flat, (1, 2, 3, or 4 bedrooms).
£55,000 to £70,000 per year, they pay £1,562.50 per month* for the flat, (1, 2, 3, or 4 bedrooms).
Over £70,000 per year, they will pay the market rent.
*The discounted rents are based on 30% of a household's income. These rent bands may need to change by the time the development is completed. The Trust will keep the public updated on any changes.
How much could tenants save on rent?
What if a household's income changes?
If a household's income changes and moves them into a new rent band, they will pay the new rent but do not have to move home.
If the new rent is higher, it will be introduced gradually to allow them to adjust their household finances.
The Trust will calculate a household's income based on their average income over 3 years. Residents will be asked to provide their tax returns as proof of income.
The rules for the income bands
Once a tenant is offered a home, their position in that rent band is reserved:
All households can return to the rent band they first started on.
All households can move to higher rent band if their income increases.
If a household’s income falls below the rent band they started on, they will be given the opportunity to move to a lower rent band if there is availability in that rent band.
If the market rent for a flat falls below the discounted rents, the tenant will pay the lower rent.
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