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Your rent normally changes once a year – and you will get at least 4 weeks notice of a change.

More than half Hexagon tenants pay a rent plus a service charge, but they are normally rolled together as one charge and that is what you see on the rent statements or letters we send you. We are talking here about the rent element only of the charge.  We have separate information about service charges which vary according to the services we provide to your block or estate.

Each year, we apply a formula set by the Government in deciding what rent to charge. The formula takes into account:
• the rate of inflation in the previous September – this year it is based on inflation in September 2008
• how close to the “target rent” your current rent is.
The rate of inflation last September was 5% to which we add 0.5% in line with the Government’s formula to get to 5.5%. If your rent is already at the “target rent,” this 5.5% is how much extra you will have to pay this year for the rent element of your charge compared with last year.

“Target rents” are the result of Government policy to equalize the rents across for equivalent properties across different social housing landlords. For the minority of tenants, we are still adjusting their rent each year – both up and down – by £2 per week until we get to the “target rent. “ We have a separate leaflet which is being sent to tenants with the rent change notice which explains in detail how target rents are set. Examples are given in the leaflet.

Hexagon’s financial plans assume that we will apply the Government’s formula every year. We have been applying the formula every year since it was introduced in 2002.

We are well aware that many residents might be struggling to pay their rent as their earnings may be affected by the recession. Hexagon would lose a massive amount of income if we did not apply the rules this year even though inflation is now much lower than it was last September. We need the income not just this year but in years to come to pay for all the repairs and improvements we are carrying out to your homes.

Residents whose income is falling should be aware that they may be eligible for “partial housing benefit” to cover part of the rent. Contact your housing officer if you want to find out if you may be eligible.

Other housing associations are applying the Government’s formula this year as well and Hexagon’s rents are still on average 5% lower than other local landlords. 

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