The rent you pay contributes to the maintenance and repairs of our existing housing stock to ensure your home is a ‘decent standard’ and that it meets the requirements of the Building Safety Act 2022.
How is my rent calculated?
Most rents are set using the Governments rent formula for council homes, which was introduced in 2002. The formula takes into account:
- The value of the property
- The number of bedrooms
- Average earnings in the area compared to national average earnings
- Inflation rate, known as the Consumer Price Index (CPI)
Some rents are set as affordable rent, which are based on up to 80% of local market rents. Affordable rents are set on our new build properties or properties the council has acquired through purchases.
From April 2016 to April 2019, council rents were decreased by 1% annually, as required by government. From April 2020, we can increase rents annually by CPI inflation plus 1%.
Rent setting is approved annually by Cabinet before the start of each financial year in April. All tenants receive a letter at least 28 days in advance of the new rent year to let them know the change in their weekly rent and service charges (where applicable).
Your rent may also change during the financial year due to substantial modifications to your property. For example, if the number of bedrooms in the property has changed since the property was first built. If your rent needs to be reviewed and adjusted, you will be notified in advance if there are changes to the weekly rent charge.
When we make recommendations for rent increases, we will take into account the financial impact of an increase on tenants, but we will also consider the needs of the housing service to maintain, manage and improve our homes, and to be able to build new council homes in the future.
When making budgetary decisions, the Council has a duty to consult with those who are liable to pay council tax or non-domestic rates, as well as those who use or are likely to use services provided by the authority. The Council is also required to take into account their statutory public sector equality duty under the Equality Act (2010) and consider any relevant Equality Impact Assessments when formulating and agreeing proposals.
A public engagement exercise on the Council’s budget was conducted in Autumn 2024 on a basket of savings options which, if adopted for 2025/26, will impact residents and businesses in the Borough.
The final budget will go to Cabinet on 5 February 2025, and then to Council for full approval on 25 February 2025.
Why has my rent and service charges increased?
Due to inflation pressures, the costs of staffing and the supplies to repair and maintain our properties has increased significantly.
Providing homes that are safe to live in is a priority and we also need to speed up our plans to clear the backlog of non-urgent repairs and carry out surveys to understand the condition of our properties.
The Regulator of Social Housing has introduced a new range of standards which include demonstrating we are providing value for money, and they now have the power to intervene where this is not the case.
Please be assured that the additional income from rent and service charge increases will be invested in improving the quality of the services you receive.
This year a 52 week Rent Year, how does this affect me?
This year is known as a 52-week rent year, which means your rent will be charged 52 times. As always, we charge rent every Monday.
If your housing costs are paid for by Universal Credit:
- Keep this letter somewhere safe - you will need it in April.
- Wait until you are sent a to-do in April called 'Confirm your housing costs'.
- Use the information in this letter to complete the to-do before the due date to avoid problems with your payments.
You must only use the 'Confirm your housing costs' to-do to report these changes. Do not contact Universal Credit to report them in any other way.
If you are currently in receipt of housing benefit you will receive your entitlement letter during week commencing 10 March 2025. Your Housing Benefit entitlement is calculated on your current rent; meaning your first weeks rent and Housing Benefit is not immediately aligned. The adjustments will be made automatically from week 2 of the new rent year.
If you pay by monthly Direct Debit, the amount you pay will be re-calculated automatically.
Where do I get help, I can’t afford this increase?
We know that this is difficult time for many of our customers and we want to ensure support is available.
Our Welfare Rights Team can give you free independent and impartial advice and support of all welfare benefits. If you need any advice, please contact 0121 569 3158.
For more information, please visit https://www.sandwell.gov.uk/welfarerights or https://www.sandwell.gov.uk/resilientresidents.
If you are struggling to pay your rent, please contact the Rents Team on 0121 737 5148.
To help our customers budget and to give you peace of mind that your rent is paid on time, we ask customers to pay their rent by direct debit. You can set up a direct debit online at: www.sandwell.gov.uk/payingyourrent or by calling 0121 368 1166
What can I do to help me budget for my rent payments?
If you would like to set up an arrangement to pay a little extra towards your rent to help you budget for an unexpected change in your circumstances, please contact the Rents Team on 0121 737 5148.
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