tenants handbook
Section Six
YOUR RENT
RENT SETTING
How is my rent set?
The Government wants to make sure that all social landlords set their rent in the same way.
Guidelines were introduced by the Government in 2002 which detail the way that rents have to be set. These guidelines relate to what is called 'Rent Restructuring'.
The Government want rents for similar properties owned by different landlords in the same region, to be set at a similar level.
To do this, the Government say that the rent must be set using a formula
What factors are used in the formula?
The formula takes into account:
1. The national average housing association weekly rent
2. The average earnings in Manchester in 1999 compared to the rest of the country as they were in 1999 (this is not your personal income)
3. The number of bedrooms in your home
4. The value of your home in 1999 compared to the national average value of housing association property in 1999
Why are the details as at 1999?
The Government simply wanted to get an idea of the differences in prices in different parts of the country at a point in time. They chose January 1999 as that point in time.
What does this formula do?
The formula has been created to calculate what is called a TARGET rent. This is the rent the Government says should be charged for similar properties owned by different landlords in the same region
Because different landlords have always used different ways to set your rent, the Government has given all social landlords until 2012 to reach the TARGET rent.
If my rent is lower than the TARGET rent, how quickly will my rent increase?
To make sure that increases in rent are kept at an affordable level, the most that your rent can increase is inflation (Retail Price Index) plus 0.5% plus £2.00 over 52 weeks a year.
If my rent is higher than the TARGET rent, how quickly will my rent decrease?
To make sure that we can supply the services you need, any decreases in rent can only be applied at inflation (Retail Price Index) plus 0.5% minus £2.00 over 52 weeks a year
When will my rent change?
Any changes to your rent are normally effective on the first Monday in October in any year unless we agree a different arrangement at any other time personally with you.
How will I be told about any change in my rent?
You will be given a minimum notice period of one month. You will be served a rent increase notice that is headed:
'Section 13(2) of the Housing Act 1988. Form number 4B'
This notice is the legal notification that your rent is going to change. It will tell you what your rent is now and how much it will be changing to. This will include any service charges and any support charges.
What if I think the increase in my rent is too much?
We would ask that you contact us first so we can explain why your rent is going up.
If you are not satisfied with the answer, then you can refer the rent increase notice to a Rent Assessment Committee which is an independent panel who will compare the proposed rent to similar properties in your area. They can determine a lower rent or a higher rent.
Guidance notes are supplied with the rent increase notice, which advise you how to ask for an independent review.
How do I contact the Rent Assessment Committee?
You will need to complete a form asking the Rent Assessment Committee to look at your rent. You can contact them at the following address:
Rent Assessment Committee
1st Floor
26 York Street
Piccadilly
Manchester
M1 4JB
Tel No. 0161 237 9491 or 0845 100 2614
SERVICE CHARGES
Some tenants have to pay service charges for the property they live in. A service charge is a charge for a service provided to your home that is shared amongst a number of people in a block or on an estate, or in some cases is personal to you.
Your service charges are called 'fixed' service charges and they are split equally between the properties receiving the service
What is a fixed service charge?
A fixed service charge is the amount the landlord 'fixes' in any one year. This is the amount that is required to cover the cost of the service provided for the coming year.
How do I know if I pay service charges?
Your tenancy agreement will give you details of the services that you contribute towards.
In some cases, you will have service charges that are not communal but are specific to you.
SUPPORT COSTS
Some tenants live in accommodation that receives a service from a Scheme Co-ordinator or a warden or they receive the Community Alarm Service. The charge for this service is called a Support Charge. This is similar to a service charge but relates to services that are there to promote independent living.
Can I get Housing Benefit on all my rent and service charges?
Normally, the basic rent is covered by Housing Benefit. Service charges have to be eligible items. Your Housing Officer will advise you if you have any concerns about your service charges.
What about Support costs?
Support costs are not covered by Housing Benefit but are covered under Supporting People Grant. You would normally qualify for Supporting People Grant if you receive Housing Benefit on the rest of your rent.
If you do not qualify for Housing Benefit, you can still apply to the Council for a 'Financial Assessment' to see if you would qualify for help with your support costs. The telephone number for the Council is 0161-342-8355
When can I apply for Housing Benefit?
You can apply for Housing Benefit at any time. You can pick up an application form from the Council, or any New Charter shop.
If in doubt, you should apply - you have nothing to lose.
If you are unsure about using the service or you do not have access to the internet, please call into any of our offices where staff will be pleased to help you.
You are under an obligation to report any changes in your circumstances to the Housing Benefit Office. If you are overpaid any benefit, you may be required to repay that amount.
WHEN IS RENT DUE?
Your rent payment is due on Monday each week for the coming week. You can pay in advance if you prefer.
You must ensure that you pay the rent and all other charges for your home regularly and on time.
New Charter collects the rent over a 50-week period each year. This means there are 2 weeks when no rent is due. These weeks are clearly marked on your rent card as 'non-collecting' weeks and usually fall around Christmas. People who owe rent arrears MUST continue to pay on these weeks.
So that you know what the balance is on your account, we will send you a rent statement every 3 months.
HOW TO PAY RENT
There are a number of ways of paying your rent. The details are contained in the leaflet 'Making your payments to New Charter Housing Trust Group'.
RENT ARREARS
If you are having difficulty paying your rent, you must contact us immediately to prevent the situation from becoming serious. You have a personal Account Manager who will be happy to help you.
Our policy is that rent arrears will be dealt with in a firm but fair manner.
It may be that an arrangement can be agreed to repay arrears by installment rather than all at once. This would have to be on terms that are suitable to both us and you.
If you do not pay your rent regularly, you risk losing your home.
The main actions we will take to recover rent arrears are as follows:
2 weeks arrears – you will receive a letter
Notice of Intention to Seek Possession will be served if arrears increase
Court action may be taken if arrears continue to increase
A warrant to evict may be obtained if arrears still continue to increase
Please note that when your tenancy ends and there are rent arrears outstanding, you are still responsible for the debt – we will continue to take action to recover the money.
Further information, and/or help and advice in case of difficulty
in using the
system, including problems, can be obtained by sending an email
to the following
address. Please give as much information as possible.
Email: contact@newcharter.co.uk
