From April 2023, rent increases will take place across the social housing sector. We know that this may be a difficult time for many households so we have set out how and why this increase is calculated and the ways you can get in touch if you need help or guidance.
Rent increases are calculated using a formula set by government legislation to help make sure rent levels remain at an affordable level.
It combines a ‘cost of living’ increase, set using the Consumer Price Index (CPI), which in September 2022 was 10.1%, plus an additional 1% (subject to your Tenancy Agreement).
However, because the CPI is so high at the moment, the Government has agreed to cap social and affordable rent increases at up to 7%.
We will be applying an increase to our rent charges to meet the increased costs of delivering services and maintaining homes. To find out how our rents are increasing, please see here>>
The Government has confirmed that benefits will increase in line with inflation. If you use Housing Benefit, Universal Credit or another form of benefits to pay your rent, you will see these payments increase from April onwards.
As a not-for-profit organisation, any money made goes directly back into homes, ensuring they are safe and of good quality, as well as funding vital services and support for residents.
It will also be used to continue to improve the energy efficiency of existing homes and deliver much-needed new ones to tackle the lack of affordable housing.
We will be writing to all our residents over the next couple of weeks, detailing what your increased rent will be depending on whether you are paying affordable rent, social rent or rent on your shared ownership property.
It will also explain when it should take effect (in accordance to your tenancy agreement) and any steps that you need to take.
For more information on how our rents and service charges are calculated, please see here>>
We understand that any increase in rent may put households under extra pressure, particularly at a time when prices for energy, food and fuel are rising.
Jigsaw’s dedicated Money Advice Team is on hand to help with free and confidential advice on benefit entitlement, budgeting, managing debt and extra financial support available.
Residents in receipt of Universal Credit and Housing Benefit should find that these will be increased to cover the new rent charges providing there are no changes to their personal circumstances.
Paul Chisnell, Executive Director of Finance at Jigsaw Homes Group said: “We always aim to keep rents as affordable as possible, but also need to balance this aim with the rising costs of repairing and maintaining our homes and other essential goods and services.
“We also know that with increases in living costs, many of our residents will find this a very difficult time, so we want to reassure them that help is available should they need it.”
If you want to find out more about how this rent increase may affect you, any steps you need to take and see where our money goes, please click here to view a set of FAQ’s we have put together to help>>
