If you are a Rooftop resident, depending on the type of tenancy you have, you may be receiving a letter over the next few days advising you of the rent charges that will apply to your home from April 2012.
Government guidelines for social housing are in place to ensure that similar homes in the same area pay similar rents. This is sometimes called the ‘target rent’. We review our rents annually to bring them into line with these levels. These rents are linked to property values, the number of bedrooms and average household incomes for the county. In 2002 the Government set maximum levels that rent can be increased by. The Government has advised these maximum increase levels will continue throughout 2011-15. The maximum increase levels are calculated based on the rate of inflation for the previous September, plus 0.5% plus up to £2.00 per week. This is the way we have calculated rent increases for several years.
For many residents there will be rent increases this year, and some of you may be thinking that the increase is more than you were expecting.
The Board takes residents' ability to pay very seriously and appreciates that with the inflation rate now falling quickly the rent increase may seem high. However, the Board also has a duty to ensure it does not endanger the association's long term financial viability.
Like many organisations Rooftop is seeing its costs rise sharply as the rate of inflation has increased well above the level we have all come to expect. This affects the cost of services we provide because our contracts will also increase by inflation. Apart from services for existing residents, some of the increase will be put towards building new homes which is much needed.
While most rents have increased over the last few years, some have decreased and others have had lower than average increases. This is because the target rent for these homes is either close to, or lower than, the current rent currently charged. For 2012-13 there are approximately 750 out of 5,430 tenancies who will get the full 6.1% plus £2.00 increase.
Most of the charges we set are eligible for housing benefit, so if you think you might qualify you should make a claim to your local council or contact your Housing Officer, or a member of our Income Management Team.
The following questions and answers section may help with any queries you might have about the rent restructuring.
1) Why has my rent gone up so much when the rate of inflation has just fallen?
Rooftop Housing Group follows the guidance given by Government under the Rent Restructuring regime. Rent is calculated using the standard formula of rent + inflation + 0.5% + up to £2.00 per week. The rate of inflation used for rent increases must be the September retail price index (R.P.I). In September 2011 this was 5.6% This means that the rent increase for 2012- 13 is 5.6 % + 0.5 which is 6.1%, plus up to £2 where someone is paying less than the target rent.
2) Will my service charges be going up by the same amount as well?
Your service charges will be going up based on the cost to Rooftop Housing Group of the services provided in the last year. This means there may be decreases in some of the charges but increases in others.
3) How do Rooftop Rents compare with other landlords?
We operate in several local authority areas, but the majority of our properties are within the Wychavon District Council area. We have compared our rents with other housing associations with properties in Wychavon based on the latest available data. This has revealed that on average our rents for properties with three bedrooms were 4.3% lower than our competitors; our properties with two bedrooms were 1% lower; although our one bedroom properties had a rent 4% higher than our competitors.
4) Rooftop Housing Group is financially strong, so why should I have to pay more rent? Can’t Rooftop Housing Group simply subsidise the rent?
Whilst it is true that Rooftop Housing Group is in a healthy financial position we are still subject to government guidelines which influence what rents should be charged. Our rent income pays for the loans that we raise to build your home, enable us to carry out day-to-day maintenance and major repairs and support residents who need particular help.
5) My other bills and daily living expenses have all gone up as well, is there any help I can get to pay this increased rent?
Many of our residents are eligible for Housing Benefit. If you are not already receiving this benefit and believe you may be entitled to receive help with your rent and service charges, please contact your Housing Benefit Office.
6) I want to speak to somebody about this. Who can I contact?
If you require further information about your rent or service charge increase please contact Rooftop Housing Group direct on freephone 0800 0421 800 or 01386 420800.
Further details regarding rents and how your money is spent will be included in the Spring residents newsletter.
