How rent levels are being set for 2023/24

Five minute read

Published: 18 Nov 2022

In response to the rising cost of living, the government has announced a change to how social housing rents will be calculated from 1 April 2023. We will be consulting tenants to make sure that we maintain vital services while keeping rents affordable. Here’s how this announcement will affect you and how you can have your say on the services we provide.

What has the government said?

The government has confirmed that there will be a cap on rent increases for social housing tenants across the country. This means that rents will increase by up to 7% from 1 April 2023. The cap is designed to keep rent levels down for tenants, in light of the current high levels of price inflation and the cost-of-living crisis.

The government also announced that means-tested benefits, including Universal Credit, will rise by 10.1% from next April, in line with inflation. This means that tenants who receive these benefits will get more to help meet their household expenses, including their rent.

How are rents normally calculated?

Normally, the government allows social housing providers to increase rents in line with the Consumer Price Index, plus up to an additional 1% per year, so that their income keeps up with price inflation. However, because inflation is currently higher than it has been in previous years, this would have meant rent increases of more than 11% for 2023/24.

What will this mean for tenants?

In February, you will receive a letter from us which will confirm how much your new rent payments will be. We are working to keep rents as affordable as possible for tenants, and the rent cap means that your rent cannot increase by more than 7%. This will apply to shared ownership customers too.

Every year, we also review our rent levels against the cost of renting a home from a private landlord – for social rent customers, the average cost of renting a two-bedroom home from us is currently less than 40% of the cost charged on the open market.

What should I do if I am struggling to pay my rent?

Please talk to us. We can give you one-to-one assistance to help you manage your money, make sure you are receiving all the benefits you are entitled to, and stay on top of your bills. We’re committed to supporting tenants and we won’t evict anyone as a result of financial hardship if they are engaging with us to keep their tenancy on track.

We also partner with a range of other organisations who can help, and we have a dedicated Welfare Fund to support customers with certain expenses. To find out more, call us on 0800 218 2247 or visit www.wcht.org.uk/moneyadvice.

Will the rent cap affect the services Watford Community Housing provides?

Rising prices affect us too, as it costs us more to provide services. As rents are being capped below the current level of inflation, we will have to consider where we can make savings on the services we provide, and we will have to make some difficult decisions.

Our focus will be on meeting our legal obligation to make sure all our homes are safe and of a decent standard, and maintaining the services that matter most to you.

What sort of changes could be made to services?

We have a legal obligation to provide core services to tenants, such as safety checks and certain types of repairs – these won’t be affected. However, by changing or removing some other services, we can ensure that we have the resources we need to keep delivering the things that are most important to tenants.

We will be consulting tenants before any decisions are made, but here are some examples of areas we could look at in order to make savings:

Discretionary services provided through service charges, such as some grounds maintenance work or spending on communal areas.
Making changes to how some of our services are delivered, such as making it easier to do things online rather than over the phone.
Reducing how much we spend on community investment projects.

How will I get to share my opinion?

We are working with our Gateway Membership Team to offer opportunities for tenants, leaseholders and shared ownership customers to share their views about the services we provide.

Following the government's announcement, we carried out a consultation event for tenants on Wednesday 30 November, and an event for shared ownership customers on Thursday 1 December.

You can view the presentations from each of these events here:

An event for leaseholders will take place in January:

12 January – 6.30pm-8pm: Consultation event for leaseholders – Gateway House, Clarendon Road

Leaseholders can attend this event in person or online via Zoom. To find out more, please email community@wcht.org.uk.

To make it easy for all residents to comment, we are running a survey. Please click here to complete the survey and tell us what you think.

Please also feel free to contact us directly by emailing community@wcht.org.uk.

Who will make the final decision over changes to services and when?

Ultimately, our Group Board is responsible for approving any plans to make changes to our service offering. It is made up of tenants, independent professionals and a Watford Borough Council nominee.

The Gateway Membership Team, which is made up of Watford Community Housing tenants, will have an opportunity to make recommendations to the Group Board. By getting involved with the consultation process set out above, you’ll be able to have your say before any decisions are made.

The Group Board’s priority will be to ensure we meet our regulatory obligations and maintain good-quality services where they are needed most, while making sure we remain financially sound for the future. Any changes to our services will be considered as part of our wider budget-setting process for the next financial year, and they will be approved at a Group Board meeting in March.

We will let you know about any changes that are agreed at the meeting through our usual communications channels, including on our website – www.wcht.org.uk.

Is Watford Community Housing financially secure?

Yes, we have the highest ratings available from the Regulator of Social Housing. We are rated V1 for financial viability and G1 for governance. While the current economic situation means we may have to make some difficult decisions, we’re committed to managing our resources efficiently so that we can continue to operate effectively and provide much-needed services to our customers.