Housing association rent decrease and service charge

Minniemegs

I have had my new rent review and yes they have reduced it by 1% but they have taken 1% off last years rent and service charge combined total and not just the rental element. As our service charge has come down this year this means we are paying £1.25 more a week than if they had taken the 1% off just the rental part of last years rent. HA have told me to put this in writing to them but I cant find anything that tells me whether the 1% should come off just the rent and not the combined total of last years rent and service charge.
In the briefing note HA sent with the rent review it does say "these changes relate to "rent" and any service charge you are liable to pay may still be subject to an increase or decrease"
Any info on this subject would be very helpful

G_M

Don't reallu understand. Surely if they've taken 1% off both, you'll be better off than if they just take 1% off the rent only?

But good grief! Your costs have come down and you're not happy? And we're talking about a % of £1.25?

Oh well - I suppose this IS a moneysaving website, but still....

Minniemegs

No we are not talking about a % of £1.25, if they had taken the 1% off the rental element and not the combined rental/service charge we would be paying £1.25 less a week as the service charge has come down this year, that's £60 a year more we will be paying over the year. I quite understand if service charge goes up again next year we will pay more, the point is why should we pay the HA £60 more this year if they have calculated wrong?
Would you pay £60 more for something if it was a mistake?

G_M

I must have had one too many cream cakes this afternoon.

If they've taken 1% off your service charge which they should not have done, then surely you are better off than if they had not?

tomtontom

Can you illustrate your point in numbers OP? I am also missing what you are trying to say!

G_M

Thank F*** it's not just me!

Kynthia

So they've taken 1% off last year's rent and service charge and charged you that. However due to an overpayment in service charge you were going to be getting a reduction this year that would have meant you'd be paying less than the new 'reduced' figure?

Are you sure you aren't going to get the reduction as well as the service charge rebate?

HappyMJ

99% of £159.47 is £157.88. I still don't understand. Your rent includes service charges and they've reduced that by 1%.

It's poorly presented. I do agree. If the service charges increase by £1 next year they still have to cut the rent including the service charge by 1%.

G_M

Well, considering the 1% reduction is part of the Welfare Reform and Work Bill that has not yet passed into law, I'm even more confused now!

http://services.parliament.uk/bills/2015-16/welfarereformandwork.html

Minniemegs

As a new user cant post the link but hyde-housing.co.uk/residents/rent-information have the info I need

After much searching online have found this, FAQ 2 and 5 seem to answer my question, wish my HA had something like this on their website. Would seem like the 1% decrease is for rent charges only and service charges are entirely seperate.

HappyMJ

Minniemegs wrote: »

As a new user cant post the link but hyde-housing.co.uk/residents/rent-information have the info I need

After much searching online have found this, FAQ 2 and 5 seem to answer my question, wish my HA had something like this on their website. Would seem like the 1% decrease is for rent charges only and service charges are entirely seperate.

Is the service charge for eligible or non-eligible services?

Or what about a different link such as http://www.owenwhite.com/welfare-reform-and-work-bill-rent-reductions-important-update/

To quote...“Lords Amendment 34 would amend the provision regarding when service charge is or is not taken to be included in a reference to the rate of rent payable. It would provide that where service charge is part of the rent then the 1% reduction applies to the sum inclusive of service charge.”

It then goes on to justify why by saying...... So although previously the provisions said service charge was to be included in relation to Affordable Rent properties only, the Lord’s amendment is much wider as most social landlords say in their tenancy agreements that ‘rent’ includes service charges (whether fixed or variable) because generally you want any unpaid service charge to be considered as rent for arrears and possession purposes.