Poverty proofing SDCC's differential rent scheme - Office for Social 2025

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Differential rent refers to the excess profit that may arise owing to differences in the fertility of the land. The surplus that arises due to the difference between marginal land and intramarginal land is the differential rent. It is generally accrued under conditions of extensive land cultivation.
Calculation of Rents The rent of a dwelling let on differential rent will be calculated as 15% of the principal earners weekly assessable income, which exceeds 32.00 in the case of a single person principal earner and 64.00 in the case of a couple principal earner.
The difference between these two concepts is that scarcity rent is the difference between actual earning of the factor input and its transfer earning, whereas differential rent is the surplus enjoyed by the superior land over inferior land (i.e., super marginal rent).
Base rental rates, or contract rents, represent the negotiated rent that appears on a lease document, whereas net effective rents are the amount received by the landlord, less any concessions issues, which usually take the form of rental abatement or tenant improvement allowances (TI).
Local authority rents are based on a system called differential rents. This means that the rent is based on your ability to pay, so if your income is low, your rent will be low; and if your income increases, so will your rent.
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Terminology relating to rent If all units of land are homogeneous but demand exceeds supply, all land will earn economic rent by virtue of its scarcity. Differential rent refers to the rent that arises owing to differences in fertility of land.

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