2. Rent and service charge
Rent increase and service charge information
Every February we write to our customers to let them know about the annual rent increase which goes live in April.
The rent increase is set by the Government and can be confusing. Some customers told us that they’d like extra information about the rent increase, and also some explanation about service charges.
How rent is set
As we’re a Housing Association, we follow Government guidance and regulation when we increase rents.
The rent increase for 2025/26 has been set by the Government at 2.7%, much lower than it has been in the last couple of years. For most of our rental customers this will mean an increase of 2.7% on their rent.
Example of what the increase could mean for you
Here are some examples of what a 2.7% increase could mean for weekly rent costs.
| Your current weekly rent | Your new weekly rent | Weekly increase |
| £123.57 | £126.91 | £3.34 |
| £91.14 | £93.60 | £2.46 |
This is just to give you an indication. You will receive at a letter at the end of February explaining what your specific rent cost will be for 2025/26.
Why we need to increase rent
We know that our customers are facing challenges with increases in fuel, food and household bills. We are here to support customers and can do this in a variety of ways.
The average cost to maintain a home increased by 26% over the last three years; whilst our income has only increased by 18% over the same time.
These cost increases include delivering repairs, maintenance, the cost of materials, supplies and labour.
As your landlord, we want to provide you with safe, well-maintained homes and communities that you’re proud to live in.
We’re a not-for-profit organisation, so the rent that you pay allows us to maintain the homes that we provide and invest in our communities.
How we spend our income
There’s lots of costs and things that we need to pay for.
We don’t make a profit, so every penny of income that we receive is invested back into homes and communities.
This chart gives an overview of how we spend the money we receive. The amounts shown are in millions.
Service charges, what are they?
Some customers pay service charges for the services that they receive. The amount that people pay will depend on their tenancy/lease agreement and the level of services that they receive.
For example, if you live in an individual home on an estate, you may only pay a service charge for grass cutting on the Incommunities land that’s near your home.
That cost will be split between the Incommunities homes nearby.
If you live in a flat within a block, you’ll pay a service charge for the cleaning of the shared spaces in that block, for shared lighting and heating. Those costs will be split between the flats within the building.
What’s the service charge money used for?
Every penny that we receive from service charges goes towards the cost of the services that we provide.
Service charges pay for things such as:
- Fire alarm and fire safety
- Lift services
- Caretaking and cleaning
- Communal lighting
- Grounds maintenance
Plus lots more. However, not all customers pay for all services.
Service charge communication
For most customers the cost for the services that you receive are estimated and sent to you in February each year, alongside the rent increase letter.
Those customers are charged based on the estimates for the financial year starting in April. We’re doing a review of our services at the minute to help us understand the range of service we provide and their costs.
This review will help us to provide you with more detailed information, including the actual cost of the services that you receive.