Updates - Rent increase 2010/2011

You may recall that, at this time last year, we contacted all residents in advance of the annual rent increase notification to advise everyone how we set our rents.

The Resident's Themed Group for Rent and Income have recommended that we do the same again this year.

How do we set our rents?

In April 2000 the Government announced a new Policy of Rent Restructuring for a fairer system of affordable rents for all social housing. To meet these guidelines all registered Social Landlords have adopted a single rent formula.

The rent formula is calculated on the size, condition, locality of the property and average local earnings.

The aim of the guidelines is that all general needs properties will be at an agreed "target" rent by March 2012 this means that rents in local areas will be set at the same levels regardless of who the landlord is.

How do we calculate our rents?

We are required to use a prescribed formula that limits rent increases. This formula is the rate of inflation (as at 30 September) plus 0.5% plus £2.00 per week.

The rate of inflation as at 30 September 2009 was minus 1.4% (also referred to as deflation) and therefore the increase on a current rent of £60 would be:

£60 -1.4% plus 0.5% plus £2 = a new rent of £61.46

However once a rent reaches its "target" the formula applied is rate of inflation (as at 30 September) plus 0.50% and therefore on a current rent of £70 the calculation would be:

£70 -1.4% plus 0.5% resulting in a decrease in rent to a new rent of £69.37

Many residents will also receive details of their revised service charges for 2010/2011. Service charges are set using actual contract costs for communal cleaning, window cleaning (communal properties only) and grounds maintenance etc., and for utility charges we use existing costs plus forecasted costs.

A procurement exercise has taken place this year to secure value for money for those tenants paying a service charge in terms of quality and cost in both the communal cleaning and window cleaning contracts. New contracts have been awarded and the new costs will be effective from Monday 05 April 2010.

What is the impact for residents?

Following the recent rent review the average proposed rent for 2010/2011 is £66.15. Please bear in mind that we have property types ranging from bedsits to 5 bedroom houses

NomadE5 is reliant on its rental income to manage and maintain our homes and to build new homes. We are committed to ensuring that the service offered to our tenants will not be affected by any reduction in income for the year ahead. The planned maintenance programme for 2010/2011 of approximately £2.3 million will continue as planned.

How can NomadE5 help you?

NomadE5 has a dedicated Welfare Rights Service. Our Welfare Rights Advisors offer a confidential service and can:

- Help you to maximise your income by checking to see that you are claiming all the benefits you are entitled to,

- Help you complete claims forms and appeal against benefit decisions,

- Give you advice about how to manage any debts you may have.

You can contact the Welfare Rights Service by telephoning our Customer Service Team on 0191 268 4800 or 0845 017 8686 (local rate).

Ways to pay your rent and advice regarding your rent account.

To assist you to pay your rent we offer a variety of payment methods including Direct Debit, AllPay/Paypoint, and bank standing order. Click here for more information.

If you have any queries regarding your rent account or if you want to change your payment method to Direct Debit you can speak to your dedicated Housing Officer (Debt Recovery) by telephoning the numbers stated above.

Last Updated: Kerrie Slavin - Isos Corporate Services (25 January 2010)