Local authority rents are set in accordance with a rent scheme adopted by each housing authority having regard to the broad principles laid down by my Department in Circular letter HRT 3/2002 under Section 58 of Housing Act 1966 (as amended). The percentage of income varies within and between rent schemes depending on the terms of the scheme and the particular circumstances of the household concerned. My Department does not have information on the percentage of income collected on rents across the different housing authorities and household types.
Section 31 of the Housing (Miscellaneous Provisions) Act 2009, when commenced, will replace existing enactments in relation to differential rent schemes. Regulations and guidelines for housing authorities to give effect to section 31 are currently in preparation in my Department. When these are made, section 31 will be commenced and authorities will have one year in which to put in place a differential rent scheme under the new provisions. While it is not the intention to introduce a national standardised differential rent scheme, the regulations to be made will more clearly set out the matters that may be included in a local rents scheme, including — the level, type and sources of household income that may be assessed for rent purposes; how dependents will be accounted for in calculating rent; the manner in which the size, standard, etc., of any class or classes of dwellings are to be taken into account in determining rent, having regard to the market rent in respect of dwellings of similar size, standard, etc., in the administrative area concerned; and procedures for rent reviews.