Trust announces rent and service level changes
25 February 2008
This week (from 25 February) every BCHT household will receive details in the post of their new weekly rents due from 7 April 2008.
The Government sets the level of rent for social housing landlords across the country. In setting the rents they are keen to review the difference between rents paid for smaller properties such as bedsits and one and two bedroom homes and larger properties.
It means tenants will see their rents rise by 4.4% plus £2.17. The change is based on an inflation level (RPI) of 3.9 %.
Previously, people who have been tenants with the Trust since the Stock Transfer of Council homes in 2003 have benefited from a five year rent guarantee which has meant rents only went up by inflation plus 1.5%.
Typically, the new rent level means that a customer paying a current rent of £60.00 per week on their property will have to pay an extra £4.81 from 7 April 2008.
BCHT is also having to pass on the cost of providing services to its 16,000 tenants living in flats, sheltered schemes and linked housing. These cover heating and hot water supplies and concierge services.
Over the past five years, service charge increases for tenants have been limited to the inflation rate plus 0.5%.
However, the current cost of providing chargeable services to tenants is £3.8 million a year and only £1.3 million is recouped through charging. This means the Trust is subsidising the difference.
Building heating costs in BCHT flats and sheltered properties alone have risen by over 100% since 2003.
From 7 April 2008, 1594 tenants will pay an extra £2.00 per week for heating services and 1711 tenants will pay around £2.00 per week more for concierge services. Some tenants will be affected by both changes.
However, 8,900 tenants will see their weekly contribution to the neighbourhood warden service drop from £1.20 pence to 90 pence a week. There will be no increase in costs to customers receiving caretaking services or the BT home alarm service.
These changes follow a consultation in September 2007 with those customers who pay service costs in addition to their rent to gather their feedback on the services they receive.
BCHT will be notifying the Housing Benefit and Supporting People Team of the new rent levels and service charges. It is important that tenants who receive either of these benefits make sure they check their case has been re-assessed.
Over 80% of BCHT tenants who are affected by the new service charges are entitled to support through their Housing Benefit.
Tim Doyle, Assistant Chief Executive (Operations) said: “The Trust is legally bound by the rent levels set by the Government and as an open and responsible housing landlord we have written to every tenant giving the full details of the changes.
“The new rent level continues to compare favourably to the rents paid in the local private rented sector.
“With regard the service costs, over the past five years the trust has greatly subsidised the full costs of delivering the services and limited their effect on customers. Despite the new service charges, the Trust will continue to subsidise the cost of providing these services.
“The income raised from the increase in service charges will go directly into improving local services and developing the business for the benefit of all our customers.
“Next month we are introducing Service Standards across our customer operations so that people have a clear statement of the services they can expect from us. Each standard will be assessed annually in consultation with our customers to make sure we are providing high quality services to everyone.
“As the area’s biggest housing landlord we are committed to continuing to provide affordable, safe and secure accommodation.”
Anyone who has a query about the new rent and service charges or needs advice about possible benefit entitlement should contact their local Trust office and staff will be happy to help.
25.02.08