Changes to Rents from April 2010 -
Frequently Asked Questions
What exactly is changing with rents?
Within Government guidelines and our own rent re-structuring guidance notes there
is the flexibility to vary target rents by up to 5%. From April 2010 we are proposing
to introduce the 5% on all target rents.
Does this mean my rent will increase by 5% in April 2010?
No.
Your rent in April will increase in line with rent restructuring guidelines. For
April 2010 these guidelines state that individual rents for 2010/2011 cannot increase
more than set out using the following formula: 'Current Rent + (September RPI + 0.5%)
+ £2.17 a week', where the September RPI was -1.4%.
As an example, for a tenant whose weekly rent is £67, the maximum increase is
£1.57 giving a new rent of £68.57, an increase of 2.34%.
Why we are changing the way rents are calculated?
If we do not apply the 5% rent tolerance to target rent levels the next year is likely to
see reduced income and increased costs that will mean we may not be able to
maintain the high quality services tenants expect.
What is a target rent?
A target rent is the rent that will be charged for a property in 2012 as set down by the
Government's rent restructuring guidelines. Since 2001 all rent increases have been
set to make sure that by 2012 your rent will be at this target level.
What will rents go up to in April 2010?
Every individual rent is different. However, on average, rents will increase by £1.57
(2.34%) in April 2010. This is the lowest increase we have applied since 2005.
How will I know what my rent is going to be in April 2010?
As in previous years we will be writing to all tenants in March 2010 explaining what
your rent for the year starting in April will be. A rent information card will then be
sent out. It will explain how your rent is made up as well as any other service or
water charges you may pay with your rent.
Do these changes affect my service charges?
No. Your service charges are based on the cost of the services provided to you as
an individual. These changes do not affect how these are calculated.
My tenancy started before March 2005, what happens to me?
As part of the stock transfer process, we promised to make sure your rent increased
in line with the Government rent re-structuring guidelines. This change keeps this
promise.
For most people who have had a tenancy since before March 2005, your rent is
below the target rent. The increase on your rent each year is limited to £2.17 after
allowing for inflation. It is likely that this change will not affect you until 2012;
however each individual case is different. Your rent notification, issued in March, will
give you more information on your rent charge.
My tenancy started after March 2005, what happens to me?
When you started your tenancy you will probably have had your rent set at the target
rent. In your case, and for all other tenants, the annual increase is limited to a
maximum rise of £2.17 each week after inflation.
What happens if I transfer from one WDH property to another after
April 2010?
Nothing will change. You will still be able to move from one property to another. For
those tenants who had a tenancy before March 2005, with Wakefield Council, your
rent is protected for all transfers, as set down in the offer document issued in 2005
before the stock transfer.
Will you be applying the 5% tolerance every year?
No. Once the tolerance has been applied, it will not be applied again.
What will you spend the extra money on?
We are committed to improving the lives of our tenants. The income will allow us to
continue with our programme of property and environmental improvements within
our estates. It will also allow us to continue to build new properties in the district to
help ease the current shortfall in affordable housing.
A good example of this is how we were able to provide high levels of support to
vulnerable people in the recent adverse weather conditions. Our proposals will
ensure we can continue delivering these services in the future.
Will this affect my Housing Benefit?
No. If you are in receipt of Housing Benefit the proposed changes will not affect your
entitlement to benefits or the amount you receive.
What do I do if I struggle to pay my rent?
If you are having financial difficulties then please contact OneCALL who will be able
to put you in touch with our Debt Advice Service or visit the ask:ted website.
Can I offer my views?
Yes. We are asking for tenants views on this change as part of the 2010/2011 rent
increase. A series of local events have been arranged for people to express views and
ask any questions they may have.
You can also contact us with your views by phoning OneCALL on 0845 8 507 507 or
by e mailing us at tenants@wdh.co.uk