1. Why do we have a rent increase and how was the new rent decided?

In common with social and affordable homes providers across the country, we review rents every year. When we consider the annual rent increase, we usually take the rate of inflation at the end of the previous September as the starting point and set an increase at slightly above inflation. This allows us to make plans for additional investment in homes. \nThis year’s increase of 2.7% is based on the Consumer Price Index figure of 1.7% at the end of September 2024 plus 1%.

2. What is the Consumer Price Index?

CPI – the Consumer Price Index – is calculated by the Office for National Statistics to measure inflation. It reflects how much the price of common goods and services changes over time across the UK.

3. I pay service charges in addition to my rent. Why are these being increased?

Depending on the terms of the tenancy agreement, some tenants pay service charges in addition to their rent. \nThis is called “a fixed service charge”. That means we estimate how much it will cost to deliver the services we have agreed to provide to your home and your estate and an agreed charge is made for your share of those services, in addition to rent.\nAs with rent, the service charge is reviewed each year. This year we have calculated the increase in line with the Consumer Price Index for September 2024 which was 1.7%.\n

4. I will struggle to make increased payments – what can I do?

Get in touch with us straight away.\nThe “Having Difficulty Paying” leaflet that was enclosed with your rent letter gives you lots of options for support, A copy of it can be found \nhere\n.\nThe Reside Rents Team is also here to help if you have any questions or concerns about paying your rent. \nYou can contact the Reside Rents Team:\nBy phone 8.30am – 5pm Monday to Friday on 020 8227 5996 – option 2 \nOr email to \nResideRents@lbbd.gov.uk\n\n

5. What do I need to do if I receive Universal Credit?

You will need to access your online universal credit account and update your rent amount. However, be careful when you do this.\n \nIf you receive universal credit, the Department for Work and Pensions have told housing providers that tenants must not update their rent on their UC account until \n1 April 2025\n (if your rent is charged \nmonthly\n), or \n7 April 2025\n (if your rent is charged \nweekly\n). \nThe DWP have said that if you update your rent before the correct date this will affect your payments and you will be paid an incorrect lower amount for your housing costs. \nUniversal credit actions checklist:\nadd a reminder to your personal calendar to log into your universal credit account on 1 April 2025 (where your rent is charged monthly) or 7 April 2025 (where your rent is charged weekly).\nselect the ‘Report a change’ link and follow the steps to change your rent\nstate what the new housing costs are and the date the new charges start from\nscan or photograph the rent increase letter and upload this on your UC account, and\nadd a journal message to inform your work coach of this change. \n

6. What do I need to do if I pay by standing order?

Please go to online banking or contact your bank to make the changes to your payment. If you pay monthly, and your rent is charged weekly, it is really important you multiply the weekly rent by 52 weeks before dividing the total by 12 months to give you the correct amount for your standing order– if you don’t do this your rent payments will be short.

7. What do I need to do if I receive housing benefit?

If you are receiving housing benefit to assist in paying all or part of your rent, your new benefit entitlement will automatically be assessed by the housing benefit team, and you will be informed separately of your award. A letter is due to be sent in late March 2025 and will let you know how much housing benefit will pay.

8. Do I need to take any action if I pay by direct debit?

If you already pay by direct debit, you do not need to take any action. We will write to you again soon to inform you of your new payments from April 2025.

9. Why is my rent different to my neighbours?

There are several different types of tenancies across our properties, and this may mean your rent is different to your neighbours. \nAcross Reside we have:\n1) Social rent tenancies:\n we have two types of these and the rent you pay depends on the grant we used to finance the building of your home:\nHomes let on London Affordable Rent: the level of this rent depends on when your tenancy started. This is because there have been various caps applied to rent increases for existing tenants over the years. \nIf you have been a tenant in a London Affordable Rent for some time you will not be paying a service charge and the costs of the services we provide are included in your rent. Tenants whose tenancies began more recently will pay a fixed service charge in addition to their rent. \nHomes let at formula rent: this is a formula prescribed by the government. These tenants pay a fixed service charge in addition to their rent\n2) Discounted market rent tenancies:\n these rents are based on 80% of market rent. Market rent has increased over time so we review the amount of the rent for a home when we relet it: so that can result in neighbours’ rents being marginally different. Market rents also vary depending on the location of a home within a block: this can also result in your rent being different to that of another tenant who lives in the same block.\n3) Market rents: \nThese are set based on market rent for a home. The rent will vary depending on which block you live in, and the type of home and location of the home within the block. \n

10. Why have you issued a section 13 notice this year to me?

The law requires us to issue this notice for tenants who have a certain type of Statutory Periodic Tenancy. Unfortunately, our systems mean that we would need to do a large amount of administrative work to separate out the letters to include this notice to just those tenants. This would not be cost effective, so to make sure we do the right thing we have sent a notice to everyone. If you are unsure of your tenancy type, you are advised to contact your local citizen advice or law centre for assistance.

Changes to your rent - answers to your frequently asked questions

4 March 2025 Blog

21 February 2025

If you've received a letter detailing changes to your rent and service charge then the answers to frequently asked questions are set out below.