Each council house in the borough has a target rent based on the number of bedrooms it has and a valuation of the property carried out in 1999.
Each year, rents are increased by the preceding September inflation figure with an extra 0.5% added and then a small amount added each year in order that over time the rent for your home reaches the target rent for your property. This target is worked out in the same way for houses managed by registered social landlords as for council houses.
Government provide guidance on how to set rents and penalise authorities that diverge significantly from their recommendations.