Our rent restructure explained

Our rent restructure explained

Based on your feedback as part of the rent consultation we held in December 2019, we are changing the way we calculate your rent. We are making this change so that the amount we charge you better reflects the size, type and age of the home you live in. We are calling this process a “Rent Restructure”.

We are spreading the increases and decreases in our charges over three years to ensure that everyone can manage the change. There will be changes to the amount you pay for your home related to the “Rent Restructure” on these dates:

  • 6 April 2020
  • 5 April 2021
  • 7 April 2022

Every year we apply an Annual Rent increase; this is to cover the year on year increases in the cost of managing your tenancy and maintaining your home. On 6 April 2020 we will apply a 3.9% rent increase to all of our homes.

As both the Rent Restructure and Annual Rent increase are taking effect at the same time, this means that the amount you have to pay may increase or decrease as a combination of these two factors. We have provided three examples below for a small, medium and large home to demonstrate how we have calculated the 2020/21 rents. Details relating to your home will be sent out to you in a letter, at least four weeks before any change is made.

Why are we making these changes?

We are making these changes to ensure:

  • that what we charge you is fair, based on the size, type and age of your home.
  • that what we charge you matches what other housing associations in the Scottish Borders charge for similar homes.
  • that small properties such as bedsits and one person flats are more affordable.

These changes are based on your feedback from the rent consultation we held in December 2019.

How do our rents compare against other housing associations in the Scottish Borders?

Housing Associations that were used in comparison were: Eildon Housing Association, Scottish Borders Housing Association and Waverley Housing.
Property SizeBHA's
Average Rent 2019/20
Other Housing Assocaition's
Average Rent 2019/20
DifferencePercentage Difference
Average£79.11£81.16-£2.05-3%
Bedsit£64.07£60.35£3.726%
1 bedroom£75.11£71.41£3.705%
2 bedroom£78.34£81.63-£3.29-4%
3 bedroom£84.70£89.53-£4.83-6%
4 bedroom£92.18£97.69-£5.51-6%

How do we work out what you have to pay?

At the end of the three year transition our Rent Structure will be to charge everyone a base rent, and then based on size, type and age of the property we add or subtract from this base rent. This is set out in the table below.

1. Base Rent2. Property Size3. Property Type4. Property Age
£75 per weekBedsit, 1 Person -£25Flat £0Built before 2017 £0
Bedsit, 2 Persons -£20Three / Four in a Block +£5Built 2017 onwards +£5
1 Bedroom, 1 Person -£15Bungalow - Non Detached +£5
1 Bedroom, 2 Persons -£10Bungalow - Detached +£10
2 Bedrooms, 3 Persons -£5House - Non Detached +£15
2 Bedrooms, 4 Persons £0House - Detached +£20
3 Bedrooms, 4 Persons +£5
3 Bedrooms, 5 Persons +£10
3 Bedrooms, 6 Persons +£15
4 Bedrooms, 6 Persons +£20
4 Bedrooms, 7 Persons +£25
4 Bedrooms, 8 Persons +£30
5 Bedrooms, 7 Persons +£35

Example 1 - Small Home

A second floor flat built in 1979 that has one bedroom and accommodates one person with a current combined rent and service charge of £72.91 per week.

The new base rent is £75, reduced by £15 for the property size with no adjustment for property type or age, giving a new rental charge before rent increase of £60 per week, a decrease of £12.91.

This decrease will be phased over three years, a decrease of £4.30 per year to the weekly rent:

2020/21: £72.91 – £4.30 = £68.61
2021/22: £68.61 – £4.30 = £64.31
2022/23: £64.31 – £4.31 = £60.00

Each year we will also apply our annual rent increase. For 2020/21 the rent increase is 3.9% meaning the actual weekly rent payable in 2020/21 is £68.61 + (£68.61 x 3.9%) = £71.28

Example 2 - Medium Home

A detached bungalow built in 1968 that has two bedrooms and accommodates four people with a current combined rent and service charge of £84.53 per week.

The new base rent is £75, with no adjustment for property size or age but a £10 increase for property type, giving a new rental charge before rent increase of £85 per week, an increase of £0.47.

This increase will be phased over three years, an increase of £0.16 per year to the weekly rent:

2020/21: £84.53 + £0.16 = £84.69
2021/22: £84.69 + £0.16 = £84.85
2022/23: £84.85 + £0.15 = £85.00

Each year we will also apply our annual rent increase. For 2020/21 the rent increase is 3.9% meaning the actual weekly rent payable in 2020/21 is £84.69 + (£84.69 x 3.9%) = £87.99

Example 3 - Large Home

Mid Terrace house built in 2007 that has three bedrooms and accommodates five people with a current combined rent and service charge of £92.44 per week.

The new base rent is £75, plus £10 for the property size and £15 for the property type with no adjustment for property age, giving a new rental charge before rent increase of £100 per week, an increase of £7.56.

This increase will be phased over three years, an increase of £2.52 per year to the weekly rent:

2020/21: £92.44 + £2.52 = £94.96
2021/22: £94.96 + £2.52 = £97.48
2022/23: £97.48 + £2.52 = £100.00

Each year we will also apply our annual rent increase. For 2020/21 the rent increase is 3.9% meaning the actual weekly rent payable in 2020/21 is £94.96 + (£94.96 x 3.9%) = £98.66

We are here to help

If you would like to discuss anything about our Rent Restructure in more detail please contact us at one of our offices listed below and ask for our Customer Accounts Team. If you would like a benefit check, money advice or need assistance with making a benefits claim our Financial Inclusion Team can help you. Please contact us at one of our offices listed below and ask for our Financial Inclusion Team.

Due to Cornavirus are offices are closed to the public. But we are still working for you during our opening hours.

Address

Berwickshire Housing Association
55 Newtown Street
Duns
Berwickshire
TD11 3AU
Phone #1 01361 884000

Opening Hours

  • Monday

    8:45 am - 5:00 pm

  • Tuesday

    8:45 am - 5:00 pm

  • Wednesday

    10:30 am - 5:00 pm

  • Thursday

    8:45 am - 5:00 pm

  • Friday

    8:45 am - 4:00 pm

  • Saturday

    Closed

  • Sunday

    Closed

* Due to the Cornavirus our offices are closed to the public. However our staff will still be avaliable to contact by phone during the opening hours above.