Your rent and service charges
Affordable Rented properties, General Needs and Supported Housing properties
Each year we are required to set our rents in line with guidance received from the government. The current guidance is that rents can be increased by the rate of inflation plus an additional 1%. Our Board have therefore approved a rent increase of 7.7% (inflation rate of 6.7% as of September 2023, plus 1%). This will take effect from Monday 1st April 2024.
In determining what our rent increase should be, we looked at several factors including: how affordable any rent rise would be for you and the impact on our services if we chose to vary from the rise the government recommended. We also carried out an exercise to compare our rents with other similar organisations, both in Preston and other areas. We found that our rents were on average 9% lower than those of other social housing providers operating in the local area. When you compare our rents to those charged by a private landlord our rents are around 30% lower.
For those tenants that benefit from additional services the majority will see their service charges going up by 7.7%. After applying this increase we are still some way from recovering the actual costs of those services through the charge and so over the coming year we will be looking at how we can introduce a fairer and more equitable approach to service charges. A small number of tenants and residents will see slightly different increases due to the type of property they live in or the services they receive.
Shared Ownership properties – For Shared Ownership properties, a 9.4% increase will be applied to all rents and service charges in line with the lease agreement.
How will we use the money from the rent increase?
You have told us that investing in your home is extremely important to you, along with a high standard repairs and maintenance service. You also informed us that some key support services, such as assistance with welfare benefits and the support we provide you with your tenancy are valued by you. Your rent will continue to fund the provision of these services.
You have also told us that investing in your communities is important and we will continue to do this by building more than 100 new homes a year up to 2026. This means that we will be increasing the availability and choice of much-needed new homes across Preston and surrounding areas to meet the needs of existing and future tenants.
We are also currently undertaking a thorough review of the way we deliver all our services. You have told us that you want us to get the basics right. Our service review will look to ensure that we deliver ‘brilliant basics’. We aim to provide the services you want from us in an efficient and customer-friendly way that meets your needs. The feedback you give us, through a variety of means, will be a key part of the process so that we can tailor our approach and consistently deliver great services.
Next Steps
During the week commencing 26th February you will receive a letter detailing your new rent. We recognise that any rises in bills can be challenging, so if you are struggling with your finances please contact us. Our Tenancy Support Team is here to help if you need any advice on benefits, budgeting,financial concerns or have queries about your rent, give them a call on 0800 953 0213 (option 4) or email tenancysupport@communitygateway.co.uk
Further Information
Further information can be found on the FAQ’s below: