We are currently consulting on our reviewed Rent and Service Charge Policy. This Policy will govern rents and service charges set in 2020. The two most significant changes are:
• As a result of the Welfare Reform Act, since 2016 many of our residents will have seen their rent decrease by 1% each year. From April 2020 the requirement to reduce rents has passed and so rent increases may be applied.
• Wherever possible, service charges will now be calculated based on the cost of the service over the 12-month period covered by Elim’s most recent externally audited accounts, increased by the RPI figure of the September preceding the application of the service charge. This means that a service charge for communal gas in 2020-21 would be based on the actual amount we spent on the same service for the same property in 2018-19, as this will be the most recent year for which externally audited accounts would be available.
Previously we may have used estimates for the year ahead, or based service charges on expenditure during a 12-month period immediately preceding the new charges. This change has been made in response to customers telling us that they wanted the setting of service charges to be more transparent and easier to understand.
If you have any questions about the Policy, or wish to provide any feedback, please get in touch using the email address email@example.com. The consultation period will end on 1st November 2019.
The Policy can be viewed here