Navigating Rent Reviews Amidst Inflation: Insights for Kerslake Mews Residents

This post applies to Shared Ownership leaseholders only.

As we approach the annual rent review, it's essential to share vital information regarding potential changes that may impact our community. The upcoming review is slated to bring adjustments in accordance with the lease, primarily linked to the Retail Prices Index (RPI) plus 0.5%. September's RPI inflation rate now stands at 8.9%, indicating a possible increase of 9.4% in rents.

A Practical Example

Let's consider a practical example to illustrate the potential impact of this increase. Suppose your current rent stands at £600:

£600 + (9.4% of £600) = £600 + £56.40 = £656.40

This calculation demonstrates how the potential rent adjustment could affect your current rent based on the RPI plus 0.5% formula.

Differentiated Approach for New Shared Owners

It's important to note that while new shared owners typically benefit from a lower inflation calculation based on the Consumer Prices Index (CPI), this provision unfortunately doesn't apply at Kerslake Mews. This means that the adjustments for new shared owners align with the RPI plus 0.5%, similar to other residents.

Past Responses and Future Considerations

Last year, amidst incredibly high inflation rates, the National Housing Federation, including PA Housing as a member, recommended capping rent increases at 7%. Though inflation rates have reduced since then, they remain significantly higher than the suggested cap. This raises the question: Will similar measures be considered for the upcoming review?

PA Housing, as outlined in the lease agreement, will provide advance notification of the next review. New rents are slated to take effect from April 2024, allowing residents ample time for preparation and seeking clarification if necessary.

Looking Ahead Together

As we anticipate further details from PA Housing regarding the specifics of the next review, it's vital for residents to stay informed and engaged. Your Resident Association is committed to ensuring that information regarding potential rent adjustments is communicated effectively, and we are here to address any concerns you may have.

Remaining Connected

In this time of potential change, staying connected as a community is paramount. We encourage all residents to remain engaged with the Kerslake Mews Residents Association. Our unity and collective involvement will be crucial as we navigate these potential adjustments together.

Thank you for being an integral part of our vibrant community.