Changes to rent from April 2024
If you’re a Social Housing Resident, your rent is going to increase by 7.7% on the 1st April 2024.
Here’s what you need to know about the increase, why it’s happening, how it will affect you and the help available to you if you’re struggling.
We will increase rent in line with government legislation at Consumer Price Index rate (CPI) +1%. The CPI for September 2023 was announced by the Government as 6.7% so this means your rent will increase by 7.7%.
We have given the rent increase a lot of thought and have discussed the issue with our Board. We believe that to deliver our commitments as set out in our corporate objectives we need to maximise the money we receive from rents and apply the increase of CPI+1%.
So how will the increase affect you?
If you currently pay £100 per week in rent, your new rent will be £107.70 Rents for all homes will be reviewed, and any changes in rent will be applied from April 2024.
You will receive full details of your new rent in a letter that you will receive at the end of February 2024.
If you’re a Shared Ownership Owner, your rents are linked to another measure of inflation-RPI (Retail Price Index) plus an uplift of 0.5%, as per the terms in your lease agreement.
What do I need to do to?
What you need to do depends on your circumstances and how you pay your rent, through your Universal Credit, by Standing Order, Direct Debit or via Housing Benefit.
Full details can be found in the Frequently Asked Questions section below.
I’m struggling to pay my rent.
If you’re struggling to pay your rent or anticipate that the rent increase will cause you to fall into arrears, please don’t let the problem get out of control. Contact our Income Team now on 0115 916 6066. The team will be able to help you to make a plan to keep on top of your rent and also point you in the direction of other agencies that can help you.
Frequently Asked Questions
Q: What will my new rent be?
From April 2024, your rent will rise by CPI (Consumer Price Index) plus 1%. The CPI for September 2023 was announced by the Government as 6.7% so this means your rent will increase by 7.7% if you are a social housing resident.
Example:
If you live in a three-bedroom home and your rent is currently £100 per week, then your rent will increase to £107.70 per week, a difference of £7.70 per week.
We will write to you at the end of February 2024 to confirm how this will affect your rent payments.
Q: Why is my rent increasing?
Like every housing association, we review rents according to the CPI every year. We have discussed the rent increase with our Board and what the extra will money will pay for, i.e. maintaining/improving the standard of our homes and building much-needed homes in the area.
In 2024/25 we will spend approximately £2.3 million on repairs and maintenance of our existing homes. We’ll also spend £2.1 million on investment works, including almost £368k on kitchens, £163k on new boilers and £175k on new bathrooms. We’re also delivering a £200k pilot scheme to retrofit existing homes to make them more eco-friendly and energy-efficient, part of our long-term challenge to become a net-zero carbon housing association by 2050.
Q: What is the Consumer Price Index?
The Consumer Price Index (CPI) is a measure used by the government to estimate the average cost of typical household consumer goods and services and how that cost increases over time with inflation. The CPI rate varies and was 6.7% at September 2023.
Q: Do you have to increase my rent?
We need to increase your rent by at least CPI otherwise, we simply can’t deliver what we need to. The increase means we will be able to maintain and improve our homes and community and make our homes more energy efficient through our de-carbonisation project.
Q: What do I need to do to stay in credit?
What you need to do depends on your circumstances and how you pay your rent. This might be through your Universal Credit, by Standing Order, Direct Debit or via Housing Benefit.
– Universal Credit
If you receive Universal Credit, it is your responsibility to notify the Department for Work and Pensions (DWP) of the changes to your rent and service charge if applicable.
To do this follow the instructions below:
1. Log in to your online Universal Credit account
2. Tap on the ‘To do’ button
3. Complete the ‘Confirm your housing costs’ to do on the date shown below (do not use the ‘change of circumstances’ to do to report your rent increase)
This should be done on or as close to the 1 April 2024.
If you don’t do this, you will be underpaid your housing costs which will result in arrears on your rent account.
– Standing Order
If you pay by standing order, you will need to contact your bank to change your standing order to reflect your new rent payments. Please check you are settling into Sort Code 20-63-36 Account 73589390 and use the 8-digit tenant keys number starting 2000****
– Direct Debit
We will amend your payment if you pay by Direct Debit. You will receive a letter from Allpay with the new amounts and your dates for the year. We will only contact you if we need to discuss your current repayment arrangements; if you need to discuss your payment, you can call the team on 0115 916 6066.
– Housing Benefit
If you receive housing benefit, you do not need to do anything as we will inform the local Council of the change. It is advised to keep your rent increase letter, as Housing Benefit may ask you for this.
Q: I pay service charges – will the same increases apply?
Your service charge may increase but this will vary for each household as it will depend on what type of service charge you pay. Please be assured that we will only set service charges in line with our policy.
Your rent letter will let you know how much your service charge will increase by.
Q: Can I appeal the rent increase?
Contact us and we can talk to you about why this rent has been applied. If you are still not satisfied, we can refer you to an independent body who will consider your dissatisfaction. Not paying your increase will result in rent arrears building up on your account and we will have to take action to recover the unpaid rent that is due.
We want to avoid this unpleasant and unnecessary situation as it may end up with you facing more debt and possibly legal fees which would only make your financial circumstances more difficult.
Q: I’m struggling to pay my rent, what should I do?
If you are struggling to pay your rent, please talk to us. Speak to our Income Team on 0115 916 6066. They will be able to help you to make a plan to stay in credit and signpost you to organisations who can help you make the most of your money.
