Position statement on recent media coverage
9 September 2022
The Benyon Estate wishes to clarify its position following recent media coverage concerning a rent increase for one of its tenant properties by way of this statement and the supporting information below.
“As part of their tenancy agreement, each new tenant of the Benyon Estate is advised that rent will usually be reviewed an annual basis, with reasonable notice given. We always strive to be a responsible and responsive landlord and endeavour to keep any rent increases to a minimum.
With the rate of inflation currently at 10%, we consider the 3% rent increase in this case, to be fair and reasonable to cover the increased costs of property maintenance and improvements, which are carried out by our staff and local contractors in Hackney.
Our social responsibility is a guiding principle, and, as during the Covid pandemic, our staff are on hand to provide advice and support for tenants facing difficulties. Unfortunately, the information given in a private email appears to have been misconstrued and taken out of context.”
The email quoted was a private correspondence to the lead tenant in one shared London apartment. The 3% increase in rent for the property in question, begins in September 2022 and amounts to £79 / month. Between the four people sharing that apartment, it is a £20 / month increase for each person. The 3% increase does not apply to all of the Benyon Estate properties. Each is subject to an annual rent review but the rent may not always increase. The rate of inflation in the UK is currently at 10%.
According to the Office for National Statistics (ONS) private rental prices paid by tenants in the UK rose by 3.2% in the 12 months from August 2021 to July 2022. In London, there was a 2.1% increase in the 12 months from August 2021 to July 2022.
The 3% increase agreed in the rent review on the Benyon Estate property in question is for the 12 months from September 2022 – 2023
It would not be correct to compare the two, given that the 3% rent increase for the forthcoming 12 months takes into account the rising rate of inflation.
To provide further context, the London Borough of Hackney (the district in which the Benyon Estate is located) voted in January this year to increase its tenant rents (residential) from April 2022 by 4.1% - Rate of Consumer Prices Index + 1%. This is the standard set by the Social Housing Regulator.