Rent and Service Charges - Questions and Answers

The setting of rents is required to take account of the provisions of the Welsh Government Rent and Service Charge Standard 2020-2025 and in October 2024 Welsh Government confirmed that the maximum rent increase for social housing was 2.7%.

The Council's HRA Business Plan has been stress tested to see what changes in rents and service charges need to be made to allow it to remain viable, maintain essential standards for existing homes and be able to increase the number of affordable homes available across Powys.

Taking into account the consultation undertaken with the Tenant Scrutiny Panel the conclusion is that a rent increase of 2.7% is necessary to make sure that the Housing Service is sustainable and able to provide homes and services for both current and future tenants.

In considering the increase the Council took into consideration inflationary pressures and increases in costs in particular labour and materials, the 2.7% increase does not cover all cost increases. Affordability for tenants of the whole cost of living in a property, including for example, rent, service charges and energy costs was taken into consideration.

The Tenant Scrutiny Panel has also been involved in the discussions about setting rents for 2025-2026.

From April 1^st 2025 the average rent in Powys will increase by 2.7% for all 5,548 Council owned homes excluding service charges.

Service charges charged to HRA tenants are amended from effect from April 1^st 2025 to allow the Council to recover the cost incurred in providing these services.

Garage rents in Powys with effect from April 1^st 2025 are increased from £14.65 to £15.05 per week (£18.06 for non-tenants subject to VAT)

Garage plot charges, unless covered by a fixed rate agreed at the time of letting, from April 1st 2025 have increased from £186.29 to £191.32 for the year.

Weekly occupation charge from April 1^st 2025 charges for Gypsy and Traveller pitches will be increased by 2.7%, the average rent being £125.39.

Other rental and service charges, not detailed above, effect from April 1^st 2025 will increase by 2.7%.

Service charges are based on the actual cost of providing extra services to your home over and above the basic provision of maintenance, management and long-term investment.

These costs vary year-to-year, so we change the service charge to match the cost of providing these services.

Why do I pay a service charge for a lift I never use?

Lifts are provided for everyone in a block to use. The service charge covers the cost of providing and maintaining the lift, which can be used by any tenant. Where a block benefits from a lift all the households are expected to contribute to the cost of providing this important facility.

I pay my water rates so why do I have to pay a service charge for sewerage to the Council?

Water rates are only for the supply of fresh water and not for sewerage. Your sewerage is processed through a system owned by the Council not the water company. The Council needs to recover the costs of providing this service for you.

Council rents are amongst the lowest in Powys - and all our properties are let through a Secure Occupation Contract.

That means that as long as you pay your rent and stick to the conditions of your contract, you have security of tenure for as long as you want to stay in your home. However, we do understand that there are times when it is difficult to pay bills such as rent.

If you think you may not be able to pay your rent, please call the Housing One number of 01597 827464 as soon as possible. We will be able to give you advice on how to avoid falling into rent arrears.

We also have a team of Financial Support Officers who can help people manage their money and where possible, claim help from the social security system - for example Universal Credit or Housing Benefit.

We are here to help so don't delay calling us if for whatever reason you are worried about making your rent payments.