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); your lease will set out how any increase is calculated and when that increase comes into effect.
Q. What is RPI?
The Retail Price Index (RPI) is a measure of inflation, which is the rate at which prices for goods and services are rising. It is published each month by the Office for National Statistics, the independent producer of statistics and the recognised national statistical institution of the UK. You can find out more about the Office for National Statistics here: (www.ons.gov.uk).
Q. How much is my rent going up by?
All customers will see rents increasing by the terms stated in their leases. The amount you will be paying from 1st April 2023 will be confirmed to you by letter sent to your home address on the 1st March 2023. Do refer to this letter for confirmation on the specific amount you will be paying.
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 2023 – this could take a few days so please allow time for this.
If you pay by direct debit we will update you 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?
The rent increase will come into effect from the 1st April 2023.
Q. Why is heylo increasing rents?
The terms of your lease say that your rent increases each year in line with RPI. Linking rent increases to the rate of inflation is included in the standard shared ownership lease, and is normal throughout the private rented sector. Unfortunately, inflation is currently much higher than it usually is, mainly due to a surge in worldwide demand for energy resources, shortages in the supplies of goods and many other reasons.
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. The Lease Management fee is a fee charged for the management of your shared ownership lease, 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 do not set your service charge. This is done by the managing agent for the estate that you live on. heylo collects the service charge on behalf of the managing agent and passes the funds to them to manage the estate. Your service charge payment is based on the most recent budget we have received from the managing agent for your development, which we will send to you as a separate letter to your rent review letter. Your service charge reflects the managing agents’ estimated cost to provide the services you receive on your estate.
Q. What about buildings insurance?
Under the terms of your shared ownership lease it is heylo’s responsibility to arrange the buildings insurance for your home – unless you are buying a flat and the insurance is arranged by the management company and paid for through your service charge. The policy does not cover your contents.
When you completed on your purchase you will pay an apportioned insurance premium from the date of your completion until the end of the current policy period. The current policy runs from 1st November 2022 to 31st March 2024. For all existing customers, a premium is added to your monthly payments.
You can find out more information on the buildings insurance policy by clicking here.
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