Rent and Service Charge Increases

Wandle increase rents each year. Letters have been sent to all residents explaining these increases and answering the most common questions we are asked (see below).

1. Why has my rent increased?
2. Why do I have to pay service charges?
3. How is my rent calculated?
4. Why is my rent more than my neighbour's?
5. I can't afford to increase my rent payments - what should I do?

1. Why has my rent increased?

Assured Tenancies

Housing association tenants whose tenancy started on or after 15 January 1989 generally have an assured tenancy. The rent is the rent the tenant agreed to pay at the beginning of the tenancy and is covered in the tenancy agreement. The tenancy agreement states when and how the rent can be increased. Wandle’s policy is to increase all assured tenancy rents in April of each year.

Secure Tenancies

All secure (fair) tenancies at Wandle have a ‘fair rent’ registered by the Rent Officer. We have had the rent registered for the property and the rent increase will not be more than this amount.

2. Why do I have to pay service charges?

The service charge covers the cost of providing the various services, amenities and equipment for the scheme/property. A breakdown of the service charges is included with the letter.

Leaseholders: Your service charges are based on an estimate of the actual charges we pay to our contractors, If we have over-estimated the actual amount of your weekly charge we will adjust the service charge accounts when they are reviewed every September

3. How is my rent calculated?

Assured Tenancies

Your rent letter includes:

• a leaflet explaining How Your Rent Works
• the Government formula we (like all housing associations) have to use to work out your rents
• how we have worked out your rent for this year
• how we work out your service charges
• and how we put the money to work.

In 2001, the Government introduced rent restructuring guidelines for all housing associations. These aim to decrease the difference in the rent charged by different housing associations for the same type of homes in similar areas.

As a result of rent restructuring rents are now set using a standard format by all housing associations. Rent is calculated using a formula which considers the value and size of the home and the average income of those people living in the county. This then gives a TARGET RENT for each home. In order to ensure that any rent increases are affordable the government has set limits to the amount by which rents can rise in any one year.

No rent will increase by more than the annual Retail Price Index (RPI) from September plus 0.5% plus £2 per week in any one year.

It is Wandle’s policy to increase rents by a maximum of RPI plus 0.5% plus a maximum of £2 per week until they reach the target rent.

When they reach the target rent, annual increases will be limited to no more than the annual Retail Price Index plus 0.5%. The RPI in September was 5%, which means that the maximum increase we can charge is 5.5% plus no more than £2.00 per week.

Secure Tenancies

All secure (fair) tenancies at Wandle have a ‘fair rent’ registered by the Rent Officer for their property. We have calculated the increases for these properties according to the formula used for increasing assured rents, and charge the lower of this figure, the registered rent and the target rent for the property.

Keyworkers

Keyworker rents have been increased by November RPI + 0.5% (ie 3.5%) in line with Wandle’s current policy.

Shared Ownership

Shared Ownership Rents have been increased by the lower of the amount specifed in the lease and November RPI + 1% (ie 4%) in line with Wandle’s current policy

4. Why is my rent more than my neighbour's?

There are a number of reasons why similar homes will have different rents, but usually it will either be because:

• Wandle’s policy on rent charges for new letting has changed over time and this will affect how much the tenant was charged at the start of the tenancy. Wandle’s current policy is to charge the target rent for the property when a new tenant moves in.
• The tenant has a different tenancy type from their neighbour which will affect how much rent we can charge and how much we can increase their rent by.

5. I can't afford to increase my rent payments - what should I do?

You should always try to pay your rent or lease charges in full. Building up arrears will make it more difficult to clear outstanding debt as well as making your current rent payments.

Not paying your rent is a breach of your tenancy agreement and you risk losing your home.  Wandle will take action against you if your rent account goes into arrears or you breach any current agreements.

If you think you are going t have problems please contact your Housing Officer or Income Officer as soon as you can to discuss your situation.

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