2018/19 Rent Setting

In January, we invited all tenant members to attend a budget and rent setting meeting to consult on our budget plans.

At this meeting, the proposal for how we spend money and set rents was shared with tenants. Tenants then gave us their views on the plans. These views were shared with the Board when the budget was set.

Board had to make the difficult decision of balancing the long-term financial sustainability of Tai Calon and the management and maintenance of your homes, with how the rent increase affects you. They also carefully considered the feedback from tenants.

Every Housing Association in Wales is directed by Welsh Government on setting rent. The Welsh Government sets an overall target rent within an area and advises on the maximum rent increase that can be put in place.

The Welsh Government rent policy (based on inflation of 3% plus 1.5%) set a target rent increase of 4.5%, plus a maximum of £2 per week for where the current rents are below the target rents.

Tai Calon’s Board considered this increase along with an assessment of rent affordability. As a result the Board approved a rent increase for 2018/19, which is below what the Welsh Government recommended and which follows the same principles as previous years:

  • All properties of the same type should have the same rent and we will work to achieve this.
  • Our Rent Policy complies with the Rent Setting Policy of Welsh Government and is in line with the Transfer Agreement from Blaenau Gwent Council.
  • No rent will increase by more 4.0% plus £2.00 where the current rent is lower than the target rent. This is a lower increase than the target rent threshold set by Welsh Government.
  • Rents above the target rent will remain constant.
  • Following a review of affordability, target rents for bedsits and one bed flats were not increased. Importantly, our rents remain amongst the lowest in Blaenau Gwent and in Wales. We will review our rent policy over the next 12 months and consult with you on any changes.

How are we spending and investing in your homes

Below is a chart on how the budget is to be spent in 2018/19.

2018/19 Financial Year – Where Your Money goes

  • Just over half of the budget is spent on improvements and repairs to your homes.
  • Between 2010 and 2018 we spent £117.47 million in bringing homes up to, and now maintaining them at, the Welsh Quality Housing Standard. We will continue to invest in your homes and neighbourhoods. Work has included installing new kitchens, bathrooms, heating systems, rewiring properties, and a major window replacement programme is underway.
  • Just under £5 million is spent on providing housing and support services such as dealing with tenancy matters, letting empty homes, giving support and the work of the Neighbourhoods teams.