Help and support with payments
It's really important to talk to us if you have concerns about your ability to pay your charges. Your Bromford income management advisor is there to support you and work with you to find an affordable solution. They can also assist you to claim benefits and to help you to maximise your income. You will find their contact details on the top of your annual rent review letter.
You can find additional information about what to do if you find yourself struggling with money, here: Money matters: The cost of living | Bromford.
How your rent will change
We have calculated the rent increase in accordance with your lease. Your lease will set out the review date and the mechanism for increasing your rent, which is usually based on the retail price index (RPI) for a month set out within your lease, there may also be an additional percentage applied on top.
For example; a lease states the rent is to be increased in September each year by June RPI + 0.5%. if the RPI for June 2025 was 2.9%. + 0.5% this means the rent would be increased by 3.4% in September 2025.
Why your rent changes
Our rental income pays for all of the services we provide to our customers. Every year we have to make carefully considered decisions relating to rent increases. The increases we apply to your rent are set out within the terms of your shared ownership lease. You will be charged rent for the percentage share of your home that is owned by us.
What your rent pays for
As a not-for-profit organisation, every single penny we receive is reinvested in services for customers, such as things like front-line services.
Other charges you may have to pay
Service charges
A service charge is the amount payable in addition to your rent (if applicable) such as the delivery of communal services, communal repairs and maintenance, estate grounds maintenance, buildings insurance, and the landlord’s cost of management.
For example; if you live on an estate, then the cost of maintaining any shared areas, such as shared green areas will be covered by service charges. The amount charged depends on the services you benefit from. If you don’t receive any services, then you won’t have to pay any service charges.
Ground rent
Some shared ownership customers are required to pay a ground rent charge such as those living in a flat where the freehold land is owned by us. This is usually applied annually and you will be issued with a ground rent notification. Ground rent charges are not increased each year.
Building insurance
If you are a shared owner of your property, we arrange the buildings insurance for your home on your behalf, and you will have to pay for this by way of a service charge.
We work with our insurance advisors and brokers each year to ensure you get the best value for building insurance. We appointed a new insurance provider on 1 December 2023 and in the event of a building insurance claim made after this date, there is no excess to pay.
If you have any questions about this change, please contact allan.maund@bromford.co.uk.
Why you may pay for service charges
We have a legal obligation to provide certain services and to maintain any communal areas where you live, along with management services and you are required to contribute towards the cost of providing these services as per the terms and conditions of your lease.
What’s included in your service charge
The services covered under your service charge are set out in the service charge statement we send to you along with your annual rent review letter. They will also be set out within your lease.
How we calculate your service charge
Service charges for shared ownership customers are variable.
This means the service charges you will see in your letter will be an estimate of what we believe it will cost to deliver the services you receive from April. We calculate how much your services have cost over the previous full year, and compare that to what we have charged you for that year.
If we have charged you more than we have spent, the surplus/credit will be offset against the following years’ service charges to reduce them. If we charged you less than we spent, then the deficit/shortfall will be added on to your service charges for the following year. This means customers will only ever pay the actual costs we incur for providing the service; no profit can be made through service charges.
We are required to send customers with variable service charges, a breakdown of the service charge account each year. This is normally issued in September or March of each year and will set out the comparison between the costs incurred for the services received, compared to the service charges applied, setting out any difference.
If you’re unhappy with the services you pay for
If you are unhappy with the delivery of the service you are paying for, please contact your neighbourhood coach in the first instance.
If you think your rent or service charge is incorrect
Please contact your income management advisor with the details of your query. They will liaise with our rents and service charge team to review your charges and address any issues where applicable.
If you’ve already contacted us and are still unhappy
We will enclose with your letter, a rights and obligations document in relation to your service charges. This details your right to refer your charges to the First Tier Tribunal – Property Chamber if you remain unhappy with your service charges. The First Tier Tribunal can review your charges and make a decision on whether they are reasonable.
More information can be found here: https://www.justice.gov.uk/tribunals/residential-property#leasehold.
Customers can also contact agencies such as Citizens Advice for independent advice or an independent solicitor.
You can also contact our customer solutions team to make a complaint.
How your benefits are affected by changes
You should have received a letter from us in February 2024 detailing changes to your rent and/or service charges from April.
Housing benefit
If you claim housing benefit which is paid directly to us, we will notify the local authority’s housing benefit department of the change in your charges. They will make the adjustments to your entitlement and write to you to confirm this. If you receive your housing benefit directly, you will need to contact the local authority yourself to notify them of any changes in your charges.
Please contact the Local Authority if you have any questions about your Housing Benefit award.
Universal credit
Please keep your letter safe, you will need when your new charges take effect. Wait until you are sent a ‘to-do’ in your UC online journal in April called ‘Confirm your housing costs’. Use the information within your letter to complete the ‘to-do’ before the due date to avoid problems with your payments.
Please contact the DWP if you have any questions about your Universal Credit claim.
When new charges start
For shared owners with monthly charges, the new charges will apply from 1 April 2025 or 1 September 2025 as set out within your lease.
For shared owners with weekly charges, the new charges will apply from Monday 7 April 2025.
Changing your direct debit
If you pay your charges by direct debit, we’ll amend your payments to accommodate the new amount and you will receive a letter in February or March to confirm the new payments.
Ways to pay
Direct debit
Direct debit is the easiest way to pay and a condition of most shared ownership leases, please contact your income management advisor if you wish to set up a direct debit.
Other payment methods
Payments can also be made using a debit or credit card via your online customer portal account, or by telephone using the automated payment line on 0330 1234 034. You will need your account reference number to hand.