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In April, the Government announced their intention to allow local authorities to reduce the level of increase in housing rents for 2009/10.
This meant that tenants who with effect from 6th April 2009, were facing an average increase of 6.7% would see the increase reduced to 3.1%.
Babergh have since received advice from Government about the precise arrangements needed to make this change and have acted as quickly as possible in order to minimise the length of time tenants were paying a higher level of rent.
Operational changes to Babergh’s computer systems were needed but that was dependent on the Government revising the regulations which control the level of local authority housing rents. That inevitably delayed implementation of the new rent levels.
Work to implement the change on individual accounts was however completed over the last weekend and all council housing rents have now been reduced, effective from the 6th April 2009.
Notifications were posted on 21st July. They show the net rent due as at the 20th July.
Any credit arising from the higher rent paid prior to 20th July has been offset against that weeks rent.
Where tenants are in receipt of Housing Benefit their entitlement has been recalculated, but there will be no change in their payments. The reduction in rent is matched by an equal reduction in benefit.
Where tenants are paying by Direct Debit their payments revised from the next payment date - either the 1st or 21st August. Any credit due will be deducted from the 1st instalment due at the new rate.
Where necessary revised standing order forms will be provided to tenants for them to sign and pass on to their bank or building society..
In order to help those tenants who maybe confused by the changes, a dedicated customer helpline is in place until 24th July for any tenants who have enquiries on the changes.
Tenants should call any of the following numbers: 01473 826604/ 01473 825808/ 01473825877
Now that the changes have been made the average increase in 2009/10, on 2008/09 charges is 2.99 %. The average rent for a council home is £75.56.
Please remember that these are average figures.
The difference arises because of the Government’s intention to harmonise rents for social housing (Homes owned by local authorities and housing associations) over time.
The calculation which local authorities are required to use to bring their rents in line with housing associations takes into account a number of factors - such as property value, no of bedrooms, which vary from property to property.
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