If you are a Hastoe resident in one of our affordable or social rented homes, you should have received a booklet at the end of February 2024 explaining that your rent charges are changing.
Why rent charges are changing
As a not-for-profit social housing provider, we rely on the income from rents to provide the services our residents need and to invest in new and existing affordable homes. The costs associated with these activities have risen, and continue to rise sharply, due to the escalating costs of materials and high levels of inflation. As a result, we need to increase rents to ensure Hastoe remains financially viable and so we can continue to provide the homes and services that residents need.
How have the increases been calculated?
Each year, Hastoe reviews the rents it charges in line with Government guidance and in line with the terms of tenancy agreements. The Government's Regulator for Social Housing publishes a 'Rent Standard' which states that housing associations can increase the rent charged in line with the Consumer Price Index (as of the previous September), plus 1%. The CPI measures price changes across a variety of items such as food, clothes and transport.
As of September 2023 the CPI was 6.7%. This means that as from 1 April 2024 your rent will increase by 7.7%.
For many years, increases in social housing rents have been below inflation but this cannot be sustained. Like everyone, we have been experiencing high-cost inflation, especially in relation to the cost of maintaining homes. We need to invest more in repairs, improvements and the services we provide and this increase will help us do that.
Other charges
Depending on the type of property and tenancy agreement, other charges may be payable in addition to rent. For those residents who have an Affordable Rent tenancy, the cost of any services that we provide are already included in the rent charge and no separate amount will show.
- Service charges: This is the charge for communal services that we provide to a block or around an estate. For example, this could include grounds maintenance, cleaning or external/internal communal lighting.
- Sewage treatment plant: This is the charge for us to maintain and service a sewage treatment plant or sewage pump used by properties on a housing scheme.
- Utilities: Some tenancies require a payment to us for use of personal utilities such as water or electricity. if this is the case, the charge will appear separately to rent charges.
