Why is my rent increasing?
The government issues guidance about how to calculate rent changes, in the form of formulas that consider changes in the cost of living.
- Social housing rent is reviewed based on guidance provided by the government as part of the rent policy set for social housing providers. The current guidance consists of a rent calculation formula based on the Consumer Price Index (CPI).
- Shared ownership rent is reviewed based on the Retail Price Index (RPI) according to the terms and rent calculation formula set out in your lease.
Both the Consumer Price Index (CPI) and Retail Price Index (RPI) take into account changes in the cost of living, by calculating the average price of goods and services purchased by most households in the UK.
How is my rent increase calculated?
The amount your rent is increasing depends on whether you have a tenancy agreement or lease.
1. Tenancy agreement
In September 2021 the government calculated the Consumer Price Index to be 3.1% and set the rent increase at CPI + 1%.
Rent increase = Consumer Price Index (CPI) (Sep 21) + 1% = 3.1% + 1% =
4.1% increase (tenancy agreement)
For example, if your weekly/monthly rent is £200, you could expect your rent to increase to £208.20 (4.1% increase).
Shared Ownership rent reviews are based on September RPI plus 0.5%, as set in the terms of your current lease. This means the rent increase formula for shared owners is:
Rent increase = Retail Price Index (RPI) (Sep 21) + 0.5% = 4.9% + 0.5% =
5.4% increase (shared owners)
For example, if your weekly/monthly rent is £200, you could expect your rent to increase to £210.80 (5.4% increase).
You can find more information about how rent levels are calculated on our website.
Please note that your service charge could increase or decrease. These formulas are only for the rent portion of your overall rent and service charge.
When will my rent increase?
It is standard practice to implement rent increases in April of each year, when the new financial year begins. You will receive information about the change to your rent in February.
If you pay by direct debit, you will receive a subsequent letter confirming the new amount you will have to pay. The letter will set out when your direct debit will change.
If you pay by any other means, you will have to ensure that you change your payments to ensure that your rent continues to be paid in full.
Do I need to do anything?
If you receive Housing Benefit, you are responsible for telling your local council about the change in your rent. Where possible we’ll try to give this information to councils but we cannot guarantee this, so it’s better that you get in touch with them directly.
If you receive Universal Credit, you are responsible for informing the Department of Work and Pensions (DWP) about changes to your rent. You can do this through your Universal Credit Journal, but only from the actual date that your rent changes (4 April 2022) and not before.
What does my rent pay for?
Your rent covers a range of costs involved in maintaining your home and building and services provided, including:
- Planned and major repairs
- Responsive repairs
- Other social housing costs including community investment
- Management of the properties, including income collection and contact centre services, building insurance and communal services
It is important that you continue to pay your rent according to the terms of your tenancy agreement or lease to ensure these services can continue.
I’m finding it difficult to pay my rent. What should I do?
If you’re finding it difficult to pay your rent, please contact your Income Officer as soon as possible on 0800 432 0077. There are many ways we can support you to get and keep your finances under control, including:
- Help with applying for Universal Credit
- Advice on how to manage your money and avoid debt
- Help with claiming benefits you may be entitled to.
It’s always better to contact us sooner rather than later, and we look forward to talking with you.