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I had to have a mortgage rescue with a social housing association, due to ill health, three and a half years ago. The rental agreement has now been extended to a seven year fixed term agreement.
Two years ago I received a letter saying that my rent would decrease by 1% a year over the next four years (due to government policy) . This year I received a statement showing that for next financial year it is actually increasing the rent by 4.5% or £45 a month because my contract is mortgage rescue and is apparently now suddenly exempt from this social housing reduction. My concerns and questions that I put to the company were:
- did they apply for an exemptions for mortgage rescue clients (as doing research on the Internet indicates that in order for my contract to be increased they had to apply for a specific exemption) they haven’t given me a straight answer to this.They just refer me to their web site
which says some have gone up and some down depending on the funding.
- I’m also concerned that having been told in writing that I could expect a decrease, I was not formally informed that this had changed until I just received a list of next years rental payments including the increase, and I am now left with increases which have not been budgeted for. Given what I was led to expect, surely there should be some form of firm contract or agreement here?
- I see other social housing associations continue to allow the mortgage rescue clients to enjoy the 1% discount - so its not universally applied.
I wonder having gone past the initial three years and now being on a 7 year fixed term agreement, is this still considered a mortgage rescue tenancy - and will be so for ever more?
Grateful for any thoughts or shared experiences?
Two years ago I received a letter saying that my rent would decrease by 1% a year over the next four years (due to government policy) . This year I received a statement showing that for next financial year it is actually increasing the rent by 4.5% or £45 a month because my contract is mortgage rescue and is apparently now suddenly exempt from this social housing reduction. My concerns and questions that I put to the company were:
- did they apply for an exemptions for mortgage rescue clients (as doing research on the Internet indicates that in order for my contract to be increased they had to apply for a specific exemption) they haven’t given me a straight answer to this.They just refer me to their web site
which says some have gone up and some down depending on the funding.
- I’m also concerned that having been told in writing that I could expect a decrease, I was not formally informed that this had changed until I just received a list of next years rental payments including the increase, and I am now left with increases which have not been budgeted for. Given what I was led to expect, surely there should be some form of firm contract or agreement here?
- I see other social housing associations continue to allow the mortgage rescue clients to enjoy the 1% discount - so its not universally applied.
I wonder having gone past the initial three years and now being on a 7 year fixed term agreement, is this still considered a mortgage rescue tenancy - and will be so for ever more?
Grateful for any thoughts or shared experiences?
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Comments
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I am in the same boat my house was purchased under the mortgage rescue scheme in 2012, I have just had a phone call to say my rent is going up by 4% taking my rent to £595 per month I have been told that my tenancy is exempt from the rent cap that was introduced awhile back. I am really angry that other tenants are having a rent freeze or rent reduction, it seems very unfair, and my rent increase has been linked to CPI the Consumer Price Index so I am literally at the mercy of this measure and they take the increase from the September figure. I have looked high and low for information how I can challenge this but so far I have found nothing. Been in touch with Shelter but they were not much help.0
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Hi - I am also in the same boat! I notice Hyde Housing have allowed the 1%deceease so it!!!8217;s down to interpretation by Housing Assosciatioons. I wrote to DCLG for clarification and got this reply:
In general terms the legislation does not directly mention mortgage rescue properties, but does establish an exemption from the rent reduction for intermediate rental properties. The document linked below explains how the mortgage rescue scheme was set up and you should contact your housing association directly if you have any concerns about the application of the regulations in your circumstances.0
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