2021 Rent Review Outcome
Thank you to everyone who took the time to respond to our rent review consultation. Below is some background; details on the decision made; and the outcomes for 2021.
In April 2020 Pineview implemented our revised rent structure, agreed after two years consultation with tenants. This structure totals the amenity points for each individual property and then multiplies this by a charge factor, to reach a monthly rent charge. This means that rent charges reflect the property type, size and relevant attributes of each individual property. The charge factor is reviewed each year, following consultation.
The tenant consultation took place throughout December and January and the Management Committee considered the responses at the January committee meeting. The response from the tenant consultation was as follows:
% of respondents who chose option
2% (business plan assumption)
1% (average of CPI over year
0.7% (CPI as at Oct 2020)
Management Committee Decision
The Management Committee are extremely grateful to everyone who took part in the rent consultation and provided feedback. Although the majority of responses chose a higher increase, the Management Committee decided on the lower increase of 0.7%. The Committee considered the exceptional circumstances everyone is experiencing, as well as pursuing value for money savings that will not affect tenant services, and decided that the lower increase was the best option for everyone. As such the charge factor within the rent setting structure will increase from £19.42 per point to £19.56 per point.
What does this mean for 2021 Rent Charges?
As the rent restructure is still being implemented, this will mean different things for different properties. Some properties will have their rent charge reduced and some will have their rent charge increased.
In April 2021, 305 properties will have their rent charges reduced. Reductions will range from £0.46 to £76.85 per month, with an average of £27.90. This is a saving of £8,509 per month for tenants living in these properties. The remaining 547 properties will see rent increases from £0.06 to a maximum of £10 per month, with the average being £3.28. This is an increase on 2020 rent charges of £1,794 per month. Overall, the Associations rental income will reduce by just over £6,714 per month.
As part of the transfer promises made by Pineview to the tenants of the then Kendoon Housing Association, Pineview made three promises in respect of rent charges:
- Rents would be charged in line with the Pineview rent structure.
- Rent increases would be limited to CPI for the first 3 years.
- Where rents were lower than those calculated through the rent structure, rent increases would be capped at £10 per month in the first year and £10 + CPI per month, cumulatively over the years until rents were in line with the rent structure.
We are pleased to confirm that Pineview is meeting these three promises as follows:
- The Pineview rent structure is being implemented with effect from 1 April 2021, as promised.
- The rent charge factor has been changed by only 0.7%, the rate of CPI as at October 2020, as promised.
- Any increases on individual rents are being capped at a maximum of £10 per month during 2021/22, as promised.
As a result of this, over 84.3% of ex Kendoon homes will have reduced rent charges from April 2021.
In accordance with our Value for Money statement we will continue to review our costs to identify any future possible efficiencies, without reducing services to tenants.
What do I need to do?
If you pay by Standing Order, you will need to inform your bank at the start of March to increase your payment which is due to be paid on or before 28th March and monthly thereafter.
If you pay by Direct Debit through Allpay, we will ask Allpay to alter your payments by the changed amount.
If you receive Housing Benefit and this is paid directly to Pineview we have advised Glasgow City Council of this change. If you are in receipt of Universal Credit and this is paid directly to Pineview, you must ensure that you notify the Department of Work and Pensions (DWP) on, or as soon as you can after 01 April 2021. You can do this through your online journal or by contacting them directly. It is important that you do this as it will affect the amount of rent being paid to Pineview if you fail to action it on time.
If your Housing Benefit or the housing element of Universal Credit is paid directly to you, then you must advise Glasgow City Council (for Housing Benefit) and the DWP (for the housing element of Universal Credit) of the change to your rent charge. Please contact us if you require assistance with this.
If you are in arrears of rent please contact us on receipt of this letter to discuss your proposal for payment to clear these arrears.
If you have any queries or wish more information, please do not hesitate to contact us by telephoning 0141 944 3891 or e-mailing and a member of staff will be pleased to assist you.