Affordable rents now and in future

60 Second summary
The Government has set target rents for each local area based on the size of homes and average earnings which over time the Council and Thrive Homes would have to meet
Until target rents have been reached rises will be capped under Government policy
Both the Council and Thrive Homes believe in affordable rents now and in future.So Thrive will guarantee rents will be no higher with them than the Council over the next five years.
Thrive Homes 30 year spending plans are based on charging affordable rents.

Thrive Homes

Thrive Homes believes in affordable rents:

  • It would guarantee rents for five years even if Government rules change to allow higher increases
  • Just like the Council there would be one rent increase per year each April
  • Rents would rise by no more than inflation plus ½%, plus £2.17 per week – until the target rent has been reached
  • After target rents have been reached, Thrive Homes spending plans are based on rent rises of no more than inflation plus ½%.

Three Rivers District Council

  • The Council would continue to set rents in line with Government policy of no more than inflation plus ½%, plus £2.17 per week until the target rent has been reached
  • The Council cannot guarantee rents if government rules change
  • Each year, the Council has to pay nearly £5.6 million out of the rent collected to the Government to be used elsewhere in the country, so the Council will have to look at cuts in services to balance the books
  • By 2012, Council rents are expected to be at the same level as that charged by local housing associations.

Government limits rent rises

The Government has introduced a single policy for rents for all councils and housing associations. Its aim is to make sure rents for social housing remain affordable and well below rents set by private landlords.

Target rents are worked out for each type of property.They are based on location, property value, the number of bedrooms and local average earnings compared with the national average earnings.Councils and housing associations are expected to bring their rents into line with these targets by 2012.

And until target rents are reached, annual rent increases in any year are limited to the rate of inflation plus ½%, plus £2.17 per week.

After target rents have been reached, Thrive’s financial plans are based on following current Government policy of limiting annual rent increases to no more than inflation plus ½%.

Rent free weeks

As with the Council, Thrive Homes would continue to provide four ‘rent free’ weeks a year by collecting rent over 48 weeks.

Rent arrears – firm but fair

Any rent arrears owed to the Council at the time of transfer would become payable to Thrive Homes.

Just like the Council, Thrive Homes would take rent arrears very seriously.All tenants will be expected to pay their rent as required under the terms of their tenancy agreement.

Thrive Homes would make sure tenants rights to live in their home match as closely as possible those with the Council. Thrive Homes’ tenancy agreement for Three Rivers Council tenants excludes a number of grounds for eviction available under a standard assured tenancy.

Thrive Homes also realises that tenants sometimes have financial difficulties through no fault of their own. Thrive Homes would personally contact tenants who are in arrears as soon as there is a problem to try and work out a sensible way for any arrears to be paid off.

Thrive Homes’ policies on rents and arrears would be clear and open so all tenants could understand what is expected of them. To help plan family budgets Thrive Homes would provide all tenants with a quarterly rent statement.

Staff would be trained in arrears management, debt management, and benefits so they can give advice to tenants to help them avoid problems and support those households who are in difficulty.Thrive Homes would also work very closely with the Council’s budget advisors and would consider the introduction of a Tenancy Support Officer to assist tenants in completing forms, advising on debt and other issues.

Only as a last resort would Thrive Homes take court action to end a tenancy.

Thrive Homes would consider introducing an incentive scheme to reward and encourage good tenants.

More ways to pay

All the current ways of paying rent would still be available.Tenants would be able to pay their rent:

  • By cheque by post
  • At Council cash offices
  • At Post Offices
  • By Standing Order
  • By phone
  • By debit or credit card
  • By direct debit

Thrive Homes would look at other ways in which tenants can pay their rent, for example, internet payments, Pay Point Card and a rent collection service for elderly and disabled tenants.

Housing Benefit

Entitlement to claim Housing Benefit would not be affected.Applications would still be made to the Council, and the Council would continue to make payments to those who qualify.Tenants would still be able to have Housing Benefit paid directly into their rent account.

Advice on Housing Benefit would be available at the Council’s offices and at Thrive Homes’ offices.

Supporting People

Transfer would not affect tenants’ entitlement to claim Supporting People Grant for support services such as sheltered scheme wardens, floating support or home maintenance.

Support services and charges would continue to be reviewed regularly.

Service charges

Certain tenants pay the cost of heating and hot water as service charges and tenants in some sheltered schemes pay water meter charges.This would continue after any transfer.

Thrive Homes would not introduce a separate service charge for a service tenants currently receive. It would only introduce a new service which carries a separate charge after consulting with the tenants who would benefit from the new service.

Both the cost and the level of existing services received would not be affected by the transfer.

Rent ready reckoner

This table will give you an indication as to the amount of rent you can expect to pay as councils and housing association rents converge.

Weekly rent example in 2007/8 / Three Rivers District Council / Thrive Homes
2008/9 / 2009/10 / 20010/11 / 2011/12 / 2008/9 / 2009/10 / 2010/11 / 2011/12
£60 / £63.97 / £68.05 / £72.26 / £76.60 / £63.97 / £68.05 / £72.26 / £76.60
£65 / £69.12 / £73.36 / £77.72 / £82.22 / £69.12 / £73.36 / £77.72 / £82.22
£70 / £74.27 / £78.66 / £83.19 / £87.85 / £74.27 / £78.66 / £83.19 / £87.85
£80 / £84.57 / £89.27 / £94.12 / £99.11 / £84.57 / £89.27 / £94.12 / £99.11
£85 / £89.72 / £94.57 / £99.58 / £104.73 / £89.72 / £94.57 / £99.58 / £104.73
£90 / £94.87 / £99.88 / £105.04 / £110.36 / £94.87 / £99.88 / £105.04 / £110.36
No rent guarantee / Rents guaranteed even if government policy changes