PI's: Annual Increase Gross Rent
Rents: Annual Increase Gross Rent
GNPI 02: Annual increase in GN gross rents
Rationale, Definition & Worked Example
Below you can find information regarding the rationale, definition and formula for this performance indicator. This includes a worked example to demonstrate how this indicator should be calculated.
Rationale
Annual increase in GN gross rents tracks year-on-year changes in total rental charges (including eligible service charges), supporting assessment of rent policy, income trends and comparability across providers.
Definition
The rent increase PI for the year is calculated for all self-contained and shared (non-self-contained) dwellings, excluding new dwellings (which tend to increase the average rent disproportionately).
In order to calculate the increase for the year:
The average rent figure is taken for the last period of the year – the last week if weekly charges are made or the last month converted to a weekly payment, if charges are monthly.
The gross charge includes rent, service charge eligible for housing benefit and supporting people charges.
Numerator is the gross rent, service charge eligible for HB and supportin
In order to calculate the increase for the year:
- Calculate the average weekly gross rent as at 31 March this year (as below)excluding new dwellings added to stock through the year
- Calculate the average weekly gross rent as at 31 March on the previous year
- Divide the difference between the two by the calculated average rent for the previous year
- Multiply by 100 to express the result as a percentage
The average rent figure is taken for the last period of the year – the last week if weekly charges are made or the last month converted to a weekly payment, if charges are monthly.
The gross charge includes rent, service charge eligible for housing benefit and supporting people charges.
Numerator is the gross rent, service charge eligible for HB and supportin
Formula
(A-B)*100/B
Where:
A = Average weekly Gross Rent 31 March THIS year
B = Average weekly Gross Rent 31 March LAST year
Where:
A = Average weekly Gross Rent 31 March THIS year
B = Average weekly Gross Rent 31 March LAST year
Worked Example
Previous year average GN gross rent = £120.00
Current year average GN gross rent = £126.00
Calculation:
(£126.00 – £120.00) ÷ £120.00 × 100 = 5%