Every year, we review the rent you pay for your home and reinvest the income we receive.
We review your rent at the start of every financial year and update your rental payment on 1 April. We’ll write to you one month in advance to let you know what your new rent will be.
If you receive housing benefits, you’ll need to inform the Department of Work and Pensions (DWP) of any changes to your rent - you can do this by updating your online journal. It’s important to update it as soon as possible so you don’t miss out on the money you’re due. If you need help filling in your journal, please speak to a member of our Income and Advice Services team.
We calculate rental increases in line with the Regulator of Social Housing’s Rent Standard or the terms of your lease. Our calculations are linked to national inflation rates, so rent increases will be higher when inflation is high.
For our customers who rent, the formula we use is based on CPI, or Consumer Price Inflation. CPI looks at how much prices for certain household goods and services have gone up or down in the last year; this figure is released by the Government every year. We use September CPI + 0.5% to calculate your rent increase. For example, in 2020, September CPI was 0.5%. Using our formula, we increased rent by 1% (0.5% + 0.5%) for that year.
For shared owners, the formula we use varies, according to the terms of your lease. It is always linked to RPI (Retail Price Index) plus the percentage set out in your lease. RPI is similar to CPI but is based on a different collection of household goods and services. For example, in 2020, we used the September RPI of 1.1% + the percentage specified in the shared owner’s lease.
We are a not-for-profit organisation which means every penny we make goes back into our services and your homes. We don’t make profits for shareholders – instead, we reinvest any surplus into providing affordable homes and supporting our communities. This includes investing in our existing homes, building new affordable homes and carrying out important repairs and maintenance to keep the quality of the homes we provide high. In the coming years, we’ll also continue to invest in building safety works and improving the energy efficiency of our homes.
If you’re behind in your rent payments, please do get in touch. Our Income and Advice Services team can offer support and guidance. This may include setting up a payment plan, checking you’re getting all the benefits you’re due or referring you to an organisation who can help. Take a look at our Financial Wellbeing page to find out more about this support.Financial Wellbeing