Rent review

Who is my landlord?

As per Section 48 of the Landlord and Tenant Act 1985, your landlord is Babergh District Council.

Our registered address is:

Babergh District Council

Endeavour House

8 Russell Road

Ipswich

IP1 2BX

What is rent?

Rent is the amount of money that you are charged for the use and occupation of your home. Rent is also used to maintain and repair your home.

You might also need to pay a 'service charge' (which is separate from your rent), which goes toward additional services.

How is my rent reviewed?

The government allows us - as social landlords - to increase the rent we charge each year, by a maximum of the September Consumer Price Index (CPI) +1%.

CPI is one of the figures used to measure inflation, and is published monthly by the Office for National Statistics. It considers changes in prices for everyday goods and services.

The increase applies to the net rent, and does not apply to any service charges you may pay toward your total or gross rent.

In September 2023, the CPI was 6.7%. This meant that in April 2024, rent was increased by 7.7%.

How the rent review affects you, will depend on the type of rent you pay. If you are not sure which type of rent you pay, please phone 0300 123 4000 (Option 3).

What does my rent pay for?

Your rent is paid into a budget called the Housing Revenue Account (HRA). This is legally ringfenced to cover the costs associated with housing service provision.

Every year, we produce an HRA report, which details what your rent is used for. 

Read Babergh's Housing Annual Report (2022/23)

The 2023/24 report will be published in September 2024.

What are service charges?

Service charges cover the cost of managing, maintaining, repairing and insuring common sections of the building, as well as external communal areas.

Service charges are set to recover the cost of services - not to generate profit. We operate a fixed service charges regime, which means that - should there be an overspend - we cannot come back to you to request more money. If there is an underspend, no money will be returned.

We try our best to set service charges as accurately as we can. However, unexpected costs can sometimes occur throughout the year.

Service charges for sheltered housing tenants

Sheltered housing is in place for people aged 55 and over, who are normally able to live quite independently - but need occasional help.

A sheltered housing scheme will often have a dedicated Sheltered Housing Officer, who can be called in an emergency. The buildings will also have other security features, such as an emergency alarm system.

For sheltered housing tenants, we charge a social rent. We also apply service charges, to cover the cost of any additional services we provide.

The law says that the charge must be 'reasonable', and the services provided must be carried out to a 'reasonable' standard. You will only be charged if your home benefits from the service.

We operate a fixed service charges regime, which means that - should there be an overspend - we cannot come back to you to request more money. If there is an underspend, no money will be returned.

Historically, the service charges for sheltered housing schemes have increased by a fixed percentage. Whilst these have been based on the cost of the previous 12 months, we have not increased the charge to recover the full cost of the services that we provide.

The table below, which shows average service charges, illustrates this:

District Council Cost of services (weekly) What we charged (weekly) Weekly shortfall
Babergh District Council £38.36 £25.95 £12.41
Mid Suffolk District Council £41.05 £34 £7.05

 

The table below details what the average rent and service charges - for sheltered housing schemes in Babergh - might look like, following the 2024 rent review. This is before Housing Benefit or Universal Credit.

Type of charge Before review Annual review After review
Rent £89.62 +7.7% (=£6.38) £96
Gross service charges £31 +£13.62 £44.63
Gross rent (rent + service charges)     £140.63

Please note: The example in this table is for illustrative purposes only.

Garage rent

Garage rent is reviewed each year, across both Councils, by using the Retail Price Index (RPI) for September. This is produced by the Office for National Statistics.

In September 2023, the percentage increase was 8.9%.

The average garage rent, following the 2024 rent review, might look something like this:

  Before review Annual review After review
Rent £9.45 +8.9% (=84p) £10.29

Please note: The example in this table is for illustrative purposes only.

My neighbour's property is the same is mine. Why is my rent different to theirs?

Out of respect for people's personal information - and our legal obligations - we will never discuss someone else's account with a third party.

Generally, rents might differ for a few reasons:

  • The rent is set with consideration to the property valuation, the number of bedrooms, and the local/national earnings in 1999. Over time, different regulations applied might have impacted how rent has been set for identical properties
  • The property is a different tenure (for example, it might be an affordable rent or shared ownership property)
  • The rent might have been set correctly under the regulations that were in place when it was let out - but it did not hit the 'target rent' during the period of convergence (prior to 2015)

I am on Housing Benefit. What do I do?

We notify the Housing Benefit authority of changes to your rent on your behalf.

If your circumstances have changed outside of the rent review (for example, the number of hours you work has changed, or you have someone living with you who has turned 16 but is still in full time education), you must inform your Housing Benefit authority about this as soon as possible.

I receive Universal Credit. What do I do?

During 2024/25, there are 53 weeks. Universal Credit is paid over a 52-week period - so, if you are getting the Housing element of Universal Credit, you will need to set money aside to cover the additional week of rent in the 2024/25 financial year.

You can speak to your Income Officer about paying a bit more toward your rent each week. This will mean that you will have enough money in your rent account to pay for the extra week, and avoid going into rent arrears.

You must report your increase in rent via your online journal. However, you're not able to do this until the date that the increase takes effect.

A task should appear in your 'To do' list, which will enable you to report this change.

If your Universal Credit claim is a telephone claim - and you don't have an online account - you can call the Universal Credit service centre on 0800 328 5644.

How to pay your rent

Our preferred method of payment is via Direct Debit.

Once you have set up the instruction with us, you don't need to do anything else. The payment will be collected on your chosen payment date.

Please visit our How to pay your rent webpage for more information.

I am struggling financially and need help

If you are struggling to pay your rent - or are worried about paying your rent and/or other debts - please contact our Income team, so that we can discuss your situation with you in more detail.

Please email HRAIncomeTeam@baberghmidsuffolk.gov.uk or phone 0300 123 4000.

It would also be helpful - but not essential - if you completed an Income and Expenditure sheet beforehand.

If you are on Housing Benefit or receive Universal Credit, you may be able to apply for a Discretionary Housing Payment. If you are struggling due to the cost-of-living crisis, you might be able to apply for assistance via the Household Support Fund. Please contact our Income team for more information.

The following organisations may be able to help you: