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Heylo Housing

Rent Review

What is the Rent Review?

Every year, your rent is reviewed in line with the terms specified within your lease. 

Any increase to your rent is applied and charged from the 1st of April and we will write to you on, or before the 1st of March to notify you of any changes to your rent, and to confirm the amount your rent will increase by.  Please look out for your letter and do contact us if you do not receive it. 

Do you need us to help make your rent review letter more accessible?

If you require the letter translating into another language, transcribed to Braille or in large print, please also contact us and we’ll be happy to help organise this for you.

Do you have further questions?

For answers to frequently asked questions about the rent review, please see our Rent Review FAQs below.  If you can’t find the answer to your question there, please do call us on 0203 744 0415.

Customer Support Fund

If you have any questions about the changes to your rent or have concerns about paying your rent due to financial difficulty, please follow the link below for our customer support fund page.

Click here to find out about the Customer Support Fund

Rent Review FAQs

Q. What is my rent and how is it set?

Your rent is a contractual agreement between you, and Heylo, agreed when you first purchased your share in your home. 

You pay rent on the unpurchased share of your home, in addition to your mortgage payments on the share that you do own (if you have a mortgage).  Under the terms of your shared ownership lease, your rent will increase each year in line with the Retail Price Index (RPI) plus 0.5%, or the Consumer Price Index (CPI) plus 1.0%; your lease will make clear what formula is used to calculate your rent increases, and when changes to your rent will occur. 

Q. What is RPI and what is CPI?
Both the Retail Price Index (RPI) and the Consumer Price Index (CPI) are measures of inflation in the UK. They each track the rate at which prices of goods and services go up, or down, over a period, and this is then used to determine inflation within the economy.  You can find out more about RPI and CPI at the Office for National Statistics here: (www.ons.gov.uk).
Find out more on RPI
Find out more on CPI
Q. How much is my rent going up by?

All customers will see rents increasing by the terms stated in their leases.   

Your Shared Ownership lease explains how your rent is reviewed and increased each year, and you should refer to your lease for confirmation on the formula used to calculate any increases to your rent.  This will be either RPI plus 0.5% or CPI plus 1.0%. 

For most of our customers the difference in the RPI from September 2023 to September 2024 will determine the increase in the new rent amount due from 1 April 2025. 

Most leases will state that the Gross Rent is to be used in calculating the rent increase. The Gross Rent is the amount of rent due if 100% of the property was owned by Heylo. 
The Gross Rent is then apportioned based on the portion of the property that you do not own e.g 50% which is then called the Specified Rent. 
 
Please find a worked example below: 
 
Gross Rent (100%) = £500.00 


Rent increase calculation: £500.00 x ((377.3/358.3) + 0.005) = £529.01  


This amount is then apportioned based on the share of the property owned by Heylo. Apportionment calculation: 50% of £529.01 is £264.51 

 

Specified Rent (50%) = £250.00 


Rent increase calculation: £250.00 x ((377.3/358.3) + 0.005) = £264.51 
 
For simplification of calculation and representation we use the Specified Rent (the monthly rent you currently pay) for the calculation.

 
As you will be able to see from the worked example above, the Specified Rent and The Gross Rent (apportioned) can both be used to in the calculation as they both provide the same outcome  

Q. How do I pay the rent amount due?  
If you pay your rent via a standing order it is your responsibility to update your standing order with your bank so that the correct charges are paid from 1st April 2025 – this could take a few days so please allow time for this. 

If you pay by direct debit we will update your direct debit instruction for you, so you don’t need to do anything; you’ll get a separate letter from our payment partner, AllPay, to confirm that this has been done. 

If you do not currently pay by direct debt but would like to set one up please call us and we can set that up for you. 

Q. When will this change come into effect?
Changes to rent always will come into effect from the 1st April 2025.
Q. Does Heylo decide how rents change each year?

The mechanisms for calculating changes to your rent are specified within your lease document. These mechanisms are recommended by the Government backed Homes England and published within the Capital Funding Guide document. This document is used by Heylo and many other Registered Providers of Shared Ownership to calculate how rents change each year.

The Homes England Capital Funding Guide can be viewed here:

View the Homes England Capital Funding Guide
Q. I don’t think I can afford this increase. What should I do?
Please call us as soon possible on 020 3880 7490 to discuss your situation.  
Q. I also pay a Lease Management Fee, do the same increases apply?
As per the terms of your lease, your Lease Management Fee, (sometimes referred to as the Administration Fee) will also increase in line with RPI or CPI.  The Lease Management fee is a fee charged for the management of your shared ownership lease, paid directly to Heylo, it does not cover any costs related to managing the estate you live on.
Q. I pay a service charge or estate charge, do the same increases apply?

Heylo does not set your service charge or estate charge. This is done by the management company for the estate that you live on or building that you live in.  

If service charges or estate charges are applicable to your property, one of the following will apply:

Option 1 – you receive demands directly from the management company  
If this is the case then you should continue to pay any demands directly to the management company and there will be no payments due to Heylo as part of your monthly charges 
 
Option 2– the management company will send demands to Heylo 
If this is the case Heylo will use the most recent budget and demands received from the management company and will recharge the amount to you on a monthly basis. 

The figure reflects your share of the management company's estimated cost to provide services on your development or estate. 

Your monthly payment is 1/12th of the current annual budget set by the management company. 

If you have any questions about the services being provided by your management company or details or what your payment cover, please contact them directly in the first instance as they will usually be best placed to answer any queries.  You can also raise these queries with us, but we may need to refer them to the management company first for a response. 

Q. How much is my Buildings Insurance?

If you live in a house, the buildings insurance policy for your home is provided by Heylo under the terms of your lease. The monthly premium that you pay is 1/12 of the annual premium for your home as set by the insurance company. We have recently tendered the buildings insurance to ensure that we are obtaining the best value in terms of premiums, cover and excess payable. 

If you live in a flat, it is likely that the buildings insurance for your home is covered by the management company for your development and is included in the service charge you pay. If you require clarity, please contact the management company in the first instance as they will usually be best placed to answer any queries. You can also raise these queries with us, but we may need to refer them to your managing agent first for a response. 

To read more about Buildings Insurance, including provider information, and how to make a claim, please click on the link below. 

Click Here For Buildings Insurance Information
Q. Will there be an increase in the Ground Rent I pay?
In some instances if you live in a flat, you may also have a Ground Rent charge to pay. Ground Rent is a fee  issued by the freeholder of the land on which your property is built for the right to live on the land the property is built on. This is usually an annual charge which is collected by Heylo and paid to the Freeholder (the owner of the land) of the building that you live in. 

The monthly charge that you pay is 1/12th of the annual Ground Rent paid by Heylo to the Superior Landlord.
Q. The rent increase is affordable to me, but I’m concerned about the wider rising cost of living and its impact on my household budget. What can I do?

We recognise that many costs are going up at the moment and this is leading to a squeeze on household budgets.  Practical help and support is available, and we recommend contacting the following organisations: 

StepChange – 0800 138 1111  

Citizens Advice Bureau – 0344 411 1444 

Money Advice Service – 0300 500 5000 

Turn to Us – 0808 802 2000 

National Debt Line – 0808 808 4000 

Q. What is the Heylo Resident Hardship Fund?

A resident hardship support fund has been set up to support our customers who are experiencing short term financial difficulty.  Further details on eligibility and how to apply can be found below:

Customer Support Fund