The Social Housing Rents (Exceptions and Miscellaneous Provisions) Regulations 2016

Regulation 18

SCHEDULE Formula rent

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

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 1972(1); and

(b) Greater London within the meaning of section 2 of the London Government Act 1963(2).

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 Manual(3) 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

(1)

1972 c. 70.

(2)

1963 c. 33.

(3)

ISBN 9781783211050; see the explanatory note for details of how to obtain this document.