The following information provides you with details about the increase in rent which will come into effect on Monday 1st April 2024.
From Monday 1st April 2024, Magenta Living, alongside other social housing providers is proposing to increase rent by 7.7%. The rent which Magenta Living, and other housing associations charge is set by the central government.
You will receive a letter confirming your new rent and charges at the end of February 2024.
Why is your rent increasing?
Like most organisations, Magenta Living faces increased costs each year and by increasing the rents we charge, enables us to cover these costs and maintain the services we offer to our customers. The cost of delivering repairs and maintenance and developing new homes has increased due to the rising cost of materials, supplies and labour.
Claiming Housing Benefit or Universal credit?
If you are claiming housing benefit which is paid directly to us, you do not need to do anything. We will automatically arrange for your payment to be reassessed by the relevant local authority.
If you are claiming Universal Credit and claim housing costs to pay your rent, you must let the Department of Work and Pensions (DWP) know about the change in your rent by logging into your Universal Credit Journal here.
If you don’t let the DWP know about the rise in your rent, your Universal Credit won’t be increased to cover your new rent cost which may cause rent arrears.
If you need help with your journal, please speak to your Income Officer by contacting them on 0808 100 9596.
If there has been a change in your circumstances and you need to claim Universal Credit, you can do this by visiting www.gov.uk/universal-credit
Please inform us that you intend to make a Universal Credit claim.
‘53 Week’ Year – what does this mean for you?
If you pay your rent via Universal Credit, the following only applies to you.
In the year starting Monday 1st April 2024 and ending Sunday 6th April 2025, there will be 53 Mondays in total. This will mean your weekly rent debit will be applied 53 times during this year as opposed to 52 weeks. This is something that happens every four or five years. To read more about this, click here.
How are rent increases decided?
Rent increases are set using a national formula of Consumer Price Index (CPI) in September 2023, plus an additional 1% for all housing associations. We are regulated by central government which means Magenta Living must set its rent in line with their Rent Standard.
The additional income will ensure we continue to:
Re-invest in existing homes to provide customers with safe and warm homes. We invested £2.5million in our homes during 2022/23.
Build much-needed new homes - we are committed to building 1,000 new homes over the coming years.
Create over £21million in social value through local job training opportunities, community support, health and wellbeing and partnership working.
Provide community regeneration activities and the provision of our community properties.
Deliver day-to-day neighbourhood management, supported housing and financial inclusion services, including claiming £2.46million of additional benefits for our customers.
The following diagram shows the breakdown of how our income is received and expenditure is allocated across the organisation for the year 2022/2023: