Rents and service charges

What is my rent used for?

Your rent is used to manage, maintain and improve your home, strengthen your community and help fund the building of new homes.

How is my rent charged?

Your rent is charged on a weekly basis and is due weekly in advance.

This year payments are due from 1 April 2024 to 30 March 2025.

If you choose to pay fortnightly, your payment will need to cover the current week and week following. You can also pay monthly in advance. We check your account at the end of each week.

What are the dates for the rent year?

Our rent year runs from 1 April 2024 to 30 March 2025.

Please note there are 53 Mondays during this period, so there will be 53 weekly rent payments due.

How many rent payments are there in the year?

If you pay weekly, we ask you to pay your rent for the whole year over 51 weeks so that you will have two rent-free weeks.

If you pay your rent by monthly Direct Debit, your rent for the year is paid in 12 equal instalments.

However you pay, the total for the year will be the same.

What is the ‘additional rent week’?

Every five to six years, there are 53 Mondays within our rent year, meaning there are 53 weekly rent payments due.

How does the additional rent week work with Universal Credit?

If you are receiving, or start receiving, Universal Credit and this includes your housing costs (rent), please note the DWP only pays a maximum of 52 weekly payments of rent and eligible service charges in any year. This means tenants with weekly tenancies will receive a week’s less Universal Credit housing costs than their annual rent charge.

The additional week’s rent will still need to be paid to PCH.

When are the rent-free weeks?

The ‘rent-free weeks’ will be the weeks starting 23 December 2024 and 31 March 2025.

Will I still get my free week if my rent account is in arrears?

If you are in arrears, have a court order or have another arrangement in place to clear arrears, you will still be expected to make payments during the rent-free weeks.

What is a social rent?

A social rent is based on a Government formula which takes into account the number of bedrooms, together with local wages and the open market value of the property.

PCH social rents are about 50% cheaper than renting the same property from a private landlord.

For more information about how the Government sets the rent standard, visit https://assets.publishing.service.gov.uk/media/5a7edd1fe5274a2e8ab48af3/14-05-07_Guidance_on_Rents_for_Social_Housing__Final_.pdf

What is an affordable rent?

An affordable rent is higher than social rent and is charged on most properties built since 2010, but is still around 20% to 30% cheaper than renting from a private landlord.

We set our affordable rents using Government guidance which says that when they are relet they can be charged at up to 80% of the rent for equivalent property let by a landlord in the private market (inclusive of any service charges).

Why is my rent going up?

Like all social landlords, we follow the Government’s guidance on the rents we charge each year.

Our social rents are amongst the lowest in the country and although any increase is difficult, PCH works hard to make sure they remain affordable for local people.

From April 2024, we will be increasing our rents by 7.7% following the Government’s guidance for social landlords.

This increase is calculated based on the rate of inflation (September 2023 Consumer Prices inflation rate of 6.7% + 1%).

We need to charge an increased rent to help us meet the increased costs involved in keeping our homes in good repair, making any necessary improvements, and building more affordable homes, so that we can meet the needs of local people both now and in the future.

We know that your home is important to you, and we make sure that your rent goes back into providing good quality affordable housing and supporting the communities we work within.

 

What if I fall behind with my rent or service charges?

We understand that you might be worried about your rent, especially with ongoing cost-of-living pressures.

Residents still need to continue paying their rent, but if you’re struggling, it’s important that you let us know as soon as possible so we can try to help.

The sooner we know, the sooner we can work to find a solution for you.

If you need help, please contact the Income Recovery and Financial Inclusion Team as soon as possible on Freephone 0800 028 0350 or (01752) 388121.

Money worries, especially debt, can have longstanding effects on your health, as well as having wider implications for you and your family. We work with several agencies that can help you resolve your problems in complete confidence.

Our teams can also help with applications for benefits, advice on Government support available to help with cost-of-living rises and energy costs, and other financial aid that you may qualify for, as well as debt advice.

Last year we supported hundreds of people to resolve their debt problems, access benefits they were entitled to, or source financial support.

If you are worrying about money and paying your rent, please contact us as soon as possible.

How can I get help with my rent and service charges?

If you have a low income and do not get any help to pay your rent at present, you may be entitled to Housing Benefit or Universal Credit.

If you are of pension age and would like to make an application for Housing Benefit you can do this online at https://www.plymouth.gov.uk/benefitsandgrants/housingbenefit or by contacting Plymouth City Council on 01752 668000 or by speaking to our Income Recovery and Financial Inclusion Team on Freephone 0800 028 0350 or (01752) 388121.

If you are of working age you will need to apply for Universal Credit which replaces a range of working age benefits and Tax Credits to simplify the system and make work pay. To find out if you can make a claim, and for the latest information, visit, www.gov.uk/univer¬sal-credit or speak to our Income Recovery and Financial Inclusion Team on Freephone 0800 028 0350 or (01752) 388121.

I am receiving Housing Benefit. Do I need to reapply?

If you receive housing benefit now and you live in Plymouth, you do not need to reapply.

You will receive a letter from the Housing Benefit Office that will tell you your new benefit entitlement and the revised amount you should pay each week.

If you receive housing benefit now and live outside of Plymouth, you do not need to reapply but you do need to let your local Housing Benefit Office know how much your new rent is going to be.

They will then let you know your new benefit entitlement and the revised amount you should pay each week.

Before receiving Universal Credit.

If you start claiming Universal Credit there will be a delay of around a month before your regular payments arrive, known as the waiting period - as Universal Credit is paid monthly in arrears. We advise keeping 4 weeks' rent credit on your rent account to provide a financial cushion.

I am receiving Universal Credit. Do I need to reapply?

If you receive Universal Credit and there are any changes to your rent or service charges you need to report this change to the Department of Work and Pensions by logging onto your Universal Credit journal.

In April 2024, the DWP should put a 'to do' note on your journal asking you to update your housing costs.

This must be done before the end of your assessment period in which the change has occurred. If you do not have an update on your journal, you still need to tell the DWP your new housing costs, but you should not do this until 1 April 2024, or as soon after as possible.

Please report this change to the DWP on, or as soon after the 1 April 2024 as possible.

Paying By Direct Debit

Direct Debit is the best way to pay your rent.

Direct Debit is safe and easy which is why many our residents now choose to pay this way. If you set up a Direct Debit you are protected by the Direct Debit Guarantee. You can pay weekly, fortnightly, four weekly or monthly on any date you choose.

These payments should be made in advance in line with the terms of your tenancy agreement.

For more information or to set up a Direct Debit, contact us on Freephone 0800 028 0350 or (01752) 388121.

What is a service charge?

A service charge is a charge made for services we provide to your block or home that are not covered by the rent, such as caretaking, cleaning, grass cutting and communal lighting.

Service charges are needed to share the cost of providing services to areas used by residents. These are mainly for the communal areas and grounds but for some residents, service charges also include TV services and individual heating provided by a communal heating system.

What services are covered?

Services included in the charge could be things like:

• Window cleaning
• Bin cleaning
• Maintaining your building
• Looking after the area around your building
• Grass cutting
• Hedge trimming
• Cleaning stairwells
• Providing laundries
• Keeping the building clean, tidy and safe
• Shared on-site facilities, like community rooms
• Managing specialist equipment, like lifts
• Communal lighting

Plus the cost of managing and administering these services.

How do we work out service charges?

When we work out our service charges, we only charge you what it actually costs us to provide these services.

That means we do not make a profit from service charges.

We operate a variable service charge system, which means we will only charge you the actual amount it costs us for the services you receive.

We aim to provide services in the most reasonable and cost-effective way and to a standard acceptable to you our residents. The same charges are made to all homes and residents who receive or benefit from them.

Why are you sending out a service charge statement?

The service charge statement shows you the difference between the actual costs, compared to what we originally estimated for the period October 2022 to September 2023. This period is called the ‘look back period’.

At the same time we then estimate how much your service charge will be for the following 12 months. By law, if we make this charge, we must make an adjustment when we know how much the services actually cost. We want to be open and transparent with you about these costs and the adjustment.

The estimate might be different from the actual cost due to things like changes in inflation or different products being used to provide services. Once we know the actual cost, we either add or deduct the difference from the estimated cost of the services for the next year (starting April 2024) to give your new service charge.

What is the ‘look back period’ and how does this work?

Every year in September, we look back over the previous year to see what it actually cost to provide services to you.

We look at the period from October in the previous year, to September in the following year, so we get a full 12 month’s costs.

We then check if it cost more, or less, than the amount we originally estimated.

If services cost more, we will add the difference onto your service charge for the next year’s services. If they cost less, we will deduct the difference from your service charge for next year’s services.

At the same time, we estimate costs for the coming year – which runs from 1 April – 30 March.

We send your service charge statement (covering the adjustment for October 2022 – September 2023) and your bill for the following year (covering April 2024 – March 2025) at the same time – this usually arrives in February along with your rent letter.

All annual charges start from April, unless a new service is introduced during the year.

Will I get a refund if I am owed money for the period October 2022 to September 2023?

If we overestimated your service charge for the look back period, any extra money you have paid will be taken into account by reducing your service charge for the year starting from April 2024.

Why should I pay for a lift, laundry or door entry control in my block if I don’t use them?

If you live in a block of flats with communal services, everyone in the block has access to the facilities. Whether you choose to use it or not, all residents in the block share the cost of communal services and the cost is shared between all properties in the block.

I am in a block and I know someone in another block who pays a different amount for the same service. Why is this?

Each block, however similar, will have costs that can vary. For example, one block may have more flats than another, so the costs are shared among more residents. This makes the cost per resident lower. Some blocks have more grounds to maintain or larger courtyards to clean, so the service charge may be higher.

What is a management charge in my service charges?

There is a cost in running and managing the services provided to your block. These costs are covered by the management charge.

This includes calculating the charges and adjustments, managing the contracts, making payments to our contractors and suppliers, providing information and consulting with residents.

The management charge equates to 22p per service, per week, and is never more than 15% of the total cost of your service charges.

What is my Support Service Charge?

The Support Charge is a charge that tenants of Housing with Support schemes pay to cover the cost of support, including staff who manage the scheme and provide support services.

Charges may be different for individual tenants and how long someone has held their tenancy in supported housing. It will also be dependent on whether tenants are eligible for part funding by Plymouth City Council, (if in receipt of eligible state benefits), or eligible for transitional support toward their charge from Plymouth Community Homes.

If you live in supported housing and have queries about your Support Charge, your Housing with Support Officer is available and can provide further advice and support.

There is also a separate support charge for those residents with personal alarm systems in their supported housing bungalows.

Why are my support charges changing this year?

As we explained to our sheltered housing tenants last year, the Support Charge they pay will be rising by £2 from 2024, and again every year for the next few years, as there is a significant shortfall between the amounts being paid and what it costs PCH to provide these services.

We are increasing the charges steadily to gradually close the gap, which we explained to residents in meetings and face to face consultations last year. For those tenants who started their tenancy from April 2023 or later and who already pay the full charge, the charge will increase by £1.80 per week, which is an increase of 7.7% to cover the increase in our costs.

Why is there no gardening assistance charge shown?

We wrote to residents who receive this service in November 2023 to inform them that we are reviewing the service. We have decided to remove the charge from April until we have finished this review and will write to residents separately with details of the new service and charge once the review has been concluded.

Why are my service charges changing this year?

We operate a variable service charge and the cost of providing services are calculated annually so there may be a number of factors why the service charge may change from year to year.

For example, some residents have a communal heating system to heat their home which means they have a service charge for heating.

PCH negotiates energy costs with suppliers to get the best possible price but if prices increase, we have to reflect this increase in the service charge.

Costs can also increase if someone uses more gas than we originally estimated they would.

This year, the majority of our communal service charges will be broadly staying the same. However individual heating charges will be increasing as energy costs have risen across the UK. These charges are directly passed on based on actual individual usage. While the cost of energy has started to fall, there will be an increase this year due to the previous cost of energy being higher than estimated.

The average weekly service charge across all our homes will be increasing by 2%, and in some sheltered housing schemes, the weekly charge will increase on average by 12% due to the individual heating charges.

Our charges are also affected by the increased rate of inflation, so the cost of goods, services, and wages PCH has to pay for has gone up.

Tenants will see a breakdown of their individual service charge in the individual notification letters sent in February.