rent setting A GUIDE FOR B.V.T. ASSURED TENANTS

The way in which we set the rent of our homes - explained

Since the introduction of government guidelines in 2001 the way our assured rents are set has changed. The purpose of this leaflet is to explain how these changes will affect the rent that you pay on your home and how your rent will then be reviewed each year.

RENT RESTRUCTURING - A NEW METHOD OF DETERMINING RENT

In the past it has been up to individual housing associations to decide what rent to charge for their properties. As a result there is a wide variation in the rent charged by different housing associations, often for the same type of properties in similar areas.

As a result the government have introduced legislation in the form of rent restructuring to decrease these differences and to ensure that in the future similar properties will have similar rent charges.

HOW WILL THIS AFFECT THE WAY MY RENT IS CALCULATED?

As a result of rent restructuring rents will now be set and calculated using a standard format by all housing associations. Rent is to be calculated via a formula, which considers the value and size of the home and the average income of those people living in the county. This then gives a TARGET RENT for each home.

RENT SETTING ON EXISTING PROPERTIES

B.V.T. has worked out the target rents for all of the properties we own. Some are below the rent currently charged while others are above. This will mean that over the next few years some of our rents will rise while others will fall, until eventually all of our rents will be in line with the target rents.

RENT SETTING ON NEW PROPERTIES

All properties built since the introduction of rent restructuring will have their rents set at the -target rent-.

WILL THIS AFFECT SERVICE CHARGES?

No, service charges are separate from the rent of your home and are calculated by adding the actual cost of the service to a small management charge. These costs may vary according to the cost for the service and are therefore separate from rent restructuring.

WHAT ABOUT RENT INCREASES?

As stated in your tenancy agreement we review your rent once a year. In order to ensure that any rent increases are affordable the government has set limits to the amount by which rents can rise in any one year:

• No rent will increase by more than the annual Retail Price Index plus 0.5% plus £2 per week in any one year.
• Where a property has been let at the target rent (as with new properties) annual increases will be limited to no more than the annual Retail Price Index plus 0.5%.

HOW CAN I PAY MY RENT?

The methods you can use to pay your rent will not be affected by rent restructuring. You can pay your rent by any one of the following methods.

• Direct Debit
• Standing Order
• Swipe Card
• On-Line (Internet)

CAN I GET HELP WITH PAYING MY RENT?

If you are on a low income you may be eligible to receive Housing Benefit to help you meet your obligations to pay your rent. Your Housing Assistant/Officer will be happy to offer you advice on this issue.

WHERE ELSE CAN I GET HELP?

There are lots of specialist local and national organisations where you can get help and advice, some of which are listed below:

Shelterline - Freephone 0808 800 4444

BIRMINGHAM

Citizens Advice Bureau - 0870 751 0955

Birmingham Money Advice and Grants - 0121 678 8853

Birmingham Settlement - 0121 248 3000

Central Benefits Team - 0121 464 7000

SCB Credit Union - 0121 486 2035

TELFORD

Citizens Advice Bureau - 01952 291 101

Housing Benefits Service - 01952 203 310

Housing Needs Section, Borough of Telford and Wrekin

- 01952 202 100

Fairshare Credit Union - 01952 282 528

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