SCHEDULEFormula rent

Regulation 18

1

Formula rent for the year 2000 – 2001 is determined using the following formula—

FR=(£38.23xRCExBW)+(£16.39xRPV)math

Where:

  • FR is formula rent

  • RCE are relative county earnings calculated in accordance with paragraph 2

  • BW is bedroom weighting calculated in accordance with paragraph 3

  • RPV is relative property value calculated in accordance with paragraph 4

2

1

Relative county earnings for a property are calculated by dividing the average manual weekly earnings contained in table 1 for the area in which a property is located, by £316.40.

2

The areas contained in table 1 are—

a

the local government areas specified in the first column of the tables in Schedule 1 to the Local Government Act 197218; and

b

Greater London within the meaning of section 2 of the London Government Act 196319.

Table 1

Area

Earnings £

Avon

321.20

Bedfordshire

343.70

Berkshire

345.40

Buckinghamshire

328.30

Cambridgeshire

330.10

Cheshire

322.00

Cleveland

338.40

Cornwall

255.50

Cumbria

323.70

Derbyshire

321.10

Devon

278.00

Dorset

293.90

Durham

289.70

East Sussex

281.50

Essex

325.90

Gloucestershire

308.00

Greater London

354.10

Greater Manchester

307.30

Hampshire

328.70

Hereford and Worcestershire

289.60

Hertfordshire

343.70

Humberside

318.40

Isle of Wight

288.50

Kent

316.40

Lancashire

302.70

Leicestershire

303.10

Lincolnshire

286.70

Merseyside

324.90

Norfolk

302.50

North Yorkshire

299.60

Northamptonshire

328.50

Northumberland

276.10

Nottinghamshire

298.00

Oxfordshire

323.80

Shropshire

295.40

Somerset

299.70

South Yorkshire

299.10

Staffordshire

296.20

Suffolk

304.30

Surrey

333.20

Tyne and Wear

307.90

Warwickshire

326.10

West Midlands

320.60

West Sussex

332.50

West Yorkshire

302.70

Wiltshire

313.90

3

Bedroom weighting is calculated in accordance with table 2.

Table 2

Number of bedrooms

Bedroom weighting

0 (i.e. bedsits)

0.80

1

0.90

2

1.00

3

1.10

4

1.20

5

1.30

6 or more

1.40

4

1

Relative property value is the value of a property as at January 1999 calculated in accordance with this paragraph divided by £49,750.

2

Except in the case of supported housing, the value of the property mentioned in sub-paragraph (1) must be determined by a RICS valuation method based on an Existing Use Valuation assuming vacant possession and continued residential use.

3

The value of a property which is supported housing may be determined in accordance with sub-paragraph (2) or by a RICS valuation method based on Depreciated Replacement Cost using the tables of land values contained in the Rent Standard Guidance 2015.

4

For the purposes of this paragraph—

a

“RICS valuation method” has the same meaning as in paragraph 4(8) of Part 1 of Schedule 2 to the Act (provision about levels of rents);

b

“Existing Use Valuation” and “Depreciated Replacement Cost” are to be construed in accordance with the Appraisal and Valuation Manual20 published by the Royal Institution of Chartered Surveyors.

5

Subject to paragraph 6, formula rent for the year 2015-2016 is determined by multiplying the formula rent for the year 2000-2001 by 1.6657.

6

Where the formula rent for a property for 2015-2016 determined in accordance with paragraph 6 would be higher than the rent cap figure specified in the second column of table 3, the formula rent for that property is the figure so specified.

Table 3

Number of bedrooms

Rent cap

0 or 1

£141.43

2

£149.74

3

£158.06

4

£166.37

5

£174.69

6 or more

£183.00