Pendleton Together is proposing to raise service charges in the towerblocks it manages by up to 10.5%, which will be ratified by Salford Council this week, arguing that it's following `good practice'.
The biggest service charge increase will be at Salix Court which will be hit by a 10.5%, or £3.65 a week increase. Malus Court gets a 10.2%, or £1.89 a week increase, Holm Court (£1.73 per week), Plane Court (£1.68) and Thorn Court (£2.14) get rises of between 8% and 8.7%. Meanwhile, Spruce Court (£1.87), Beech Court (£1.27), Hornbeam Court (£1.33) and Whitebeam Court (£1.46) are to get rises of between 5.7% and 7.5%.
Pendleton Together and Salford Council argue in a report that service charges have to "reflect the actual costs of providing those services" and that the aim is to ensure that "general rental income is not subsidising the cost of services to individual tenants".
As part of this, residents living in low rise blocks including Sedan Close, Woolpack Green and Tunbridge Square will see service charge decreases of between 5p and 99p per week. However, those people living in sheltered accommodation at Lombardy Court are to be faced with a wacking 17.3% increase in service charges of £3.18 per week, or £12.72 per month.
The service charge changes come on top of rent increases over the last four years, via `rent convergence', of almost 20%.
With the Government proposing a 1% reduction in social housing rent, Salford Council is proposing a rent freeze `subject to the outcome' of the Welfare Reform and Work Bill.
Whitebeam Community Association secretary, Jamie, believes that the rent and service charges masks the fact that new tenants are being charged vastly increased rents when they move into Pendleton Together managed properties, and argues that it's part of a concerted effort to make the blocks more and more unaffordable for those who need social housing most.
"The pressure is on them to get us out as they are losing over £1,000 a year for each flat by having us here" he says "If they want to force us out the only way they can do it, given the rent formula, is by increasing service charges. We may not pay the increases in rent but we will end up paying the same through service charges. It's via the back door, smoke and mirrors. It's alright people on benefits saying `Well the dole will pay it' but for how much longer? And they are not going to build more social housing, so they are blackmailing us."
In a separate report to Salford Council's Growth and Scrutiny Panel, Pendleton Together stated that "Increasing rent arrears remains a challenge...and a detailed
assessment has been undertaken to fully consider how partners can better collaborate to help to mitigate the impact of welfare reform, measures to maximise personal incomes and support to vulnerable customers better..."
17.5% service charge increase for sheltered housing residents and up to 10.5% increases for high rise tenants is surely going to make the situation worse...
For a background on what is happening to social housing see Salford Star article End The Housing Crisis – click here
See also Pendleton Untogether is the last Salford Star print issue - click here
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