Annual Rent Review - Lincolnshire Housing Partnership

Annual Rent Review: 2024-2025

Every year, our social housing rent charges are reviewed in line with government policy. The 2024/25 rent increase for our tenanted homes is 7.7%. This increase will apply to all customers in social rented homes from April 2024.

Increasing rent is not something we do lightly, especially at a time when we know there is a lot of pressure on household budgets. As a not-for-profit organisation, the rent you pay enables LHP to deliver services to you, such as:

  • repairing, maintaining, and improving our homes including tackling damp & mould.
  • delivering housing services, such as providing money support advice and tackling anti-social behaviour.
  • making our properties, neighbourhoods and local areas even better places to live.

How your rent is set

Since April 2002, the government has taken a major role in setting rents for tenants of housing associations and local authorities. The Regulator of Social Housing’s Rent Standard 2020 outlines requirements and guidance for landlords in setting rent.

There are typically two types of rent we offer:

Social Rent Affordable Rent

Social rent

Most of our rented housing stock is classed as Social Rent.

Social rent is calculated using a formula set by the government. All councils and registered social landlords use this formula. When working out the rent, we consider the:

  • Average wages in the local area
  • Value of your home
  • Number of bedrooms in your home

When & how will my rent be reviewed?

  • Existing rents are reviewed on an annual basis in line with the Rent Standard and/or relevant legislation. The current legislation has been in place since 1 April 2020 and states that registered providers may not increase rents by more than the Consumer Price Index (CPI) rate of inflation (as at September of the previous year) + 1 percentage point, in any year. As the September 2023 CPI rate was 6.7%, this was then used to calculate the rent increase of 7.7% from April 2024.
  • All Social Rents are re-assessed when a property becomes empty (previous tenant leaves etc) and will be re-let at Social Rent plus the full Rent Flexibility Level (+5% for General Needs Social Rent or +10% for Supported Housing)

Affordable Rent

Affordable Rent is defined in the Rent Standard as the amount which LHP can charge for accommodation that is provided in relation to a housing supply delivery agreement between LHP and Homes England and the accommodation is permitted by that agreement to be let at an affordable rent.

Where does it apply?

  • Grant-funded new build properties.

How will it be calculated?

In line with the Rent Standard and/or relevant legislation

When & how will it be reviewed?

  • Initial Affordable rents will be set at 80% of market rent or target rent, whichever is the greater.
  • Service charges are included in the rent for calculation.
  • Existing rents will be reviewed on an annual basis in line with relevant legislation and/or the Rent Standard.
  • Whenever an affordable rent tenancy is issued for a property, we will reassess the rent to ensure it remains no more than 80% of the relevant market rent.
  • LHP further cap Affordable rent properties at the Local Housing Allowance rates (LHA rate).

Service Charges

In addition to net rent, many tenants are required to pay service charges which are listed on your annual rent review letter, as well as on your original tenancy agreement.

These cover services such as:
•           estate grounds maintenance
•           communal heating/lighting
•           caretakers’ costs
•           communal cleaning and window cleaning
•           lifts
•           decorating communal spaces
•           door entry

It also includes administration costs that relate to those services.

We always ensure that we provide these services in the most cost-effective way that can reasonably be expected.

The annual increase in service charges (as per the Rent Standard mentioned previously) is September RPI rate of inflation +1%, which reflects the inflation associated with the cost of providing estate and/or block services unless there has been a significant change in the expected cost for the upcoming year or significant change in the service/s provided.

Sample Letter

The letter you receive will look a bit like the below. We’ve explained the most important parts of the letter:

What you should do now

Please remember that you are responsible for making sure that your rent is paid in advance when due. Please note that rent statements will no longer be provided with rent review letters, but can be obtained any time, either via the Tenant Portal or by contacting LHP and requesting one.

To learn more, select the payment method(s) you use below.

Rent Free Weeks – 2024/25

If you are on a 48 week tenancy, your rent is calculated to be paid over 48 weeks, not 52. As a result there will be 4 rent-free weeks each year.

For 2024/25 these rent-free weeks will be:

  • 16th December 2024
  • 23rd December 2024
  • 17th March 2025
  • 24th March 2025