Rent Setting and Service Charges Review 2021/22
From 2020/21 the Government announced a five year period of up to CPI +1% increases for general needs and independent living rents. Nearly all of our supported living rents however, fall outside of these restrictions and are decided by Board.
The highlights for 2021/22 Rent Setting are:
Following tenant consultation, Board have approved a rent increase of 1.5% in line with the maximum allowed for all General Needs and Independent Living. Most of our Supported Living core rents will also increase by 1.5%. Some of the reasons for applying the maximum increase are detailed below:
- The group has seen an increase in costs of compliance for maintenance and salaries in line with other providers and inflation. Additionally the group will see further costs of £5 million for decarbonisation.
- Our rent levels are reasonable and in line with what other providers charge
- We continue to invest in our existing properties
- We have ambitious development plans
Service Charges 2021-2022
Many tenants pay a service charge in addition to the core rent. This additional charge is for services such as:
Cleaning, Grounds maintenance, Lift maintenance, and Fire Safety. A full explanation of services provided by Progress Housing can be viewed here.
We review our service charges every year in line with what it costs to deliver them. We do this to ensure the charges are fair and reasonable.
Below are some highlights of this years’ Service Charge Costs:
- General Needs Service Charges will reduce by an average of 1.5%
- Independent Living Service Charges will reduce by an average of 1.3%
- Supported Living will see an average reduction of 4.5% - This is due to due to VFM savings identified during the year on white goods & flooring procurement.
In summary although there was an increase in most core rents there was an overall reduction in Service Charges. Most General Needs tenants will average a 0% impact on rent and service charges combined. Most independent living customers will see a very small increase in their combined charges (an average of less than 1%), while most supported living tenants will see a reduction in their combined charges of 1.5%