Here you'll find the latest updates and information about the increase and what this could mean to you.
Why is there a rent increase?
The increase in your rent is to cover the rise in costs to maintain and provide services to your home.
Usually, rents increase by inflation plus 1%. This year, with inflation around 10-11%, the Government have enforced a rent cap of 7%.
Our rental income is used to keep our properties safe and well maintained, whilst providing more families with a place to call home.
In the past 12 months our costs have increased by 12-14%, and we expect there to be more this year.
A replacement kitchen
A new bathroom suite
Replacing a gas boiler
*Based on averages excluding VAT.
Thrive receives no additional support from government to compensate for the increases, so this means we are having to budget very carefully. We will always prioritise services that keep our homes safe and well maintained to statutory requirements and our second focus will be on improving energy efficiency standards.
This will become more challenging as we and our partners experience more increases and that is why we must increase rents by 7%.
Despite the increases in costs, we will continue to replace as many windows, roofs, kitchens, and bathrooms as we can with the funds we have available.
In 2021/22, we spent £4.3million improving our properties compared to £3.5million in the previous year. The coming year will see further investment as hundreds more homes will benefit from loft and external wall insulation to help them retain heat and use less energy.
We are continually looking at ways to save money without impacting the level of service you receive whilst seeing how we can support customers who are struggling financially.
For more information on how we spent our rental income last year, visit page 8 of our Annual Report for Customers at www.thrivehomes.org.uk/annualreport
How much is the increase?
The Government has announced that rents for 2023/24 must be capped at 7%. As a result, from 1 April 2023 our rents will increase at this rate.
If you pay service charges, these will also change in line with the cost of providing the services where you live.
You can find out more about the way we apply service charges at: thrivehomes.org.uk/servicecharges
We will write to all customers in February 2023 to confirm how much your new rent and service charge payments will be for the year.
There are further implications for digital tenants, click on the next tab to find out more.
I am a digital tenant. What does this mean to me?
Customers on digital tenancies must always maintain four weeks credit.
Where your rent increases, we will arrange to collect a one-off payment from you in April 2023 to keep your account in four weeks credit of the new rent amount. The additional payment will be on top of your new rent amount.
The one-off payment amount will depend on the amount of your rent increase – for the average Thrive property, this one-off amount will may be around £50.
From May 2023 onward, your basic direct debit instalments will be for your new rent amount only.
I claim Housing Benefit or Universal Credit. Is there anything I need to do?
The Government is increasing a lot of benefits by around 10% to support with the cost-of-living increases. Further information on this and other support available can be found at www.gov.uk/cost-of-living
In relation to your rent increase, the following changes will need to take place:
Housing benefit: we will tell your Local Authority what your new rent and service charge payments will be so they can re-assess your claim.
Universal Credit: You will need to inform Universal Credit of the new rent amount after 3 April 2023. Universal Credit cannot accept this information in advance.
If you think you may have difficulty in paying your rent at any time, support is available. Please click here to access our latest advice and support.
Will the cost of my service charge change too?
Service charges change annually to reflect changes to the cost of providing services for your home. Whilst it’s likely that these costs will increase, you will still only pay for the services you receive.
We will inform customers of any changes to the amount due for service charges in February 2023.
What if I have difficulty making payments?
If you need it, we’ve got support on hand to help you manage your money. From advice on budgeting and benefits to support services you can contact – simply head to: thrivehomes.org.uk/money-energy-help
Please contact us immediately if you are having difficulty managing your payments or need additional support, and we will do all we can to help.
Money worries are stressful, and there are times in all our lives when we might feel overwhelmed or find it difficult to cope for a variety of reasons. If you need some help and you’re not sure where to turn, we’ll show you the way to access:
- impartial independent financial advice
- mental health support services
- family support services
- adult support needs services
- domestic violence advice and support.
If you or someone you know is in danger and in need of help, immediately call 999 or the Samaritans on 116 123.
- I have a question, how can I get in touch?