How is my rent, service and ground rent charge calculated?
The Government requires social landlords to apply a set formula when calculating annual rent increases. From April 2016, all social housing rents were cut by 1% per year, for four years. This means your weekly/monthly rent charge would go down.
However, this cut does not apply to the service charges you pay. This therefore means that your total weekly/monthly amount you pay in rent and service charges may not go down. For example:
If your current rent is £100 and service charge is £5 : £105 total
Next year, your rent will go down by 1% to: £99
However, the service charge may increase from £5 to: £6.20
This would mean that your new total would be: £105.20 total
If the service charge reduces, then you will of course be charged a lower amount.
We review service charges in April each year and make any changes at the same time. The charge we set will reflect the amount we estimate each particular service will cost over the next year. Each time we review your service charge we will send you a breakdown of the costs.
If during the year our estimated costs are not correct, the difference in the cost will be taken into consideration when calculating charges for the following year.
In all cases where we or our contractors provide services, we will make sure that the work is carried out to a high standard and that you receive value for money at all times.