We have sent information to tenants this week to let them know we will be increasing rents by 4.1% from April 2022 and to explain the reasons why.
Tenants will see rents increase on average around £3 to £4 per week as a result.
The increase comes following five years of annual Government-imposed 1% rent decreases between 2015 and 2020.
Social landlords are currently allowed to increase their rent by the Consumer Price Index (CPI) plus 1%, each year. As CPI in September last year was 3.1%, this means social housing providers like Gentoo can increase their rent by 4.1%.
We have outlined the support we are providing to tenants who want support to pay their rent, including via our Money Matters Team.
Tenants in receipt of housing benefit will have most of their rent covered via state support.
We have also announced what we will be spending for the year ahead. We will spend £66 million investing in, repairing and maintaining our existing homes, and £35 million on building new affordable homes.
In addition to the rent increase, some tenants will also see their service charges increase. Gentoo said its service charge increases are capped at £5 per week.
Gentoo Group’s Chief Executive Officer, Nigel Wilson, said:
“We are aware of the increased pressures on households due to the rising cost of living. The decision to increase our rent was a difficult one and the Gentoo Group Board debated this at length.
“As a social housing provider we must continue to deliver homes and services that our tenants rely on us for, and we must collect enough rent to pay for these services. This includes investing heavily in our existing properties, to modernise them and keep tenants safe. We are faced with increasing costs ourselves, including the legislative investment required as part of the forthcoming Building Safety Bill, and the huge cost of decarbonisation.
“We have been clear and honest with our tenants in our communication and have provided important information on the support we can provide for anyone that may have difficulty paying their rent alongside other household price increases.”
Tenants will receive their standard rent notification letter at the end of February, which will set out exactly what tenants’ new rent and service charge payments will be from April 2022.
We understand the cost of living is going up, including buying food and energy bills. If you are worried or need help paying their rent, you can contact our dedicated Money Matters Team for advice or support. The team can be contacted by:
Email: moneymatters@
gentoogroup.com
SMS text: Text ‘money’ followed by your name to 07860 022 026 (text charged at your network’s standard rate)
Telephone: 0300 123 2004 calls to 0300 numbers will cost the same as calls to a landline number and will be included as part of any inclusive call minutes.
If you have questions or comments about the rent increase, you can get in touch with us by:
Email: feedback@
gentoogroup.com
Your Gentoo Voice: https://yourgentoovoice.uk.engagementhq.com/rentlevel
