What's happening with our rents this year?
We have written to residents to let them know what their rents and service charges will be from 5 April 2021.
Our tenants get excellent value for money for the rent they pay. The social rents we charge are on average lower than other housing associations in Plymouth and amongst the lowest in the country.
The majority of our social rents are at least 50% lower than it would be to rent the same property from a private landlord.
How we set our social rents
We set our social rents using a formula from the Government, which allows us to increase social rents by 1.5%. This is based on the Consumer Prices inflation index of 0.5% at September 2020, plus 1%.
Any service charges are in addition to the social rent. They are set to cover costs and not make a profit. Therefore they can go up or down each year depending on what we estimate the cost of providing the services will be. This includes any adjustment to reflect the actual cost of services from previous years compared to what we estimated those costs would be.
Rents this year
From April 2021 most tenants will see a 1.5% increase in rent.
This means rents will be about the same level as they were five years ago because between April 2016 and March 2020, most current tenants received a rent reduction of 1% per year.
This year’s 1.5% increase will apply to social rents, affordable rents on new homes built within the past 10 years, some newly acquired homes, shared ownership rents and most garage and parking space rents.
Some of our tenants in older properties pay an ‘affordable rent’, which includes any service charges, and although set higher than our social rents, are still 20% to 25% lower than if rented privately.
These tenants will see a decrease of up to 5% in their total rent and service charges. This follows a similar 5% rent reduction applied last year, which aims to bring rents for these properties more in line with our social rents over time.
How will I know what type of rent I am paying?
All tenants will get a letter explaining their rent and service charges and what the changes mean for them.
Rents invested back into Plymouth and surrounding areas.
As we are a social landlord, we don’t have to pass profits to shareholders. Money from rents is invested back into looking after our homes, estates and communities, and building new homes.
That’s the difference we make as a landlord – we give back to help residents already living in our homes and future residents.
More information and useful animations are available on our Rents and Service Charges webpages.