Gentoo to increase rents on its social housing homes in Sunderland by 7.7%

Tenants living in Gentoo properties will see their rents rise by 7.7% after the social housing provider confirmed it will be introducing increases in line with Government guidelines.

Rent rises for social housing are capped by the Regulator of Social Housing and must increase no higher than the rate of inflation in the previous September, plus 1%.

The Customer Price Index (CPI) method put inflation at 6.7% in September, though this had fallen to 4% for the 12-month period January 2024.

Sunderland City Council has already announced rents on its own housing will rise by 6.7%.

Gentoo said an increase in rent charges is 'never a decision taken lightly', adding the company 'is committed to helping and supporting its customers through challenging financial times'.

But as households continue to feel the pinch amid the cost-of-living crisis, a further stretch on budgets will not be welcome.

Gentoo has this week written to customers to notify them of changes to their rent, which will apply from April 1. 

Peter Lenehan,  Gentoo’s executive director of finance, said: “Every effort is taken to spend  customers’ money wisely and having to raise rent charges is never a decision taken lightly, but an increase is necessary to ensure we can continue to invest in our customers’ homes, in terms of improvements, repairs and maintenance, and deliver the best possible services. 

“We know that customers can find themselves experiencing financial difficulties, through no fault of their own, and we will always work with customers to provide help and support. Whatever the circumstances are, we are here to help.”  

Gentoo, formerly Sunderland Housing Group, took over the city's existing stock of more than 36,000 council houses in 2001.

Sunderland City Council has since started building council houses again to help meet demand.

Gentoo vowed it would continue to invest in its properties as it announced the rent rises.

A statement read: "In the last full complete financial year, 2022-23, Gentoo invested more than £86million to ensure its properties were of the highest possible standard.

"This included £43.5million to maintain and repair properties and £43.3million investment in properties. However, this vital investment is done against a backdrop of rising costs faced by housing providers like Gentoo.

"Examples of this include a 41% increase in the cost of roof tiles (per 1,000), a 36% rise in the cost of installing doors and a 17% increase in the cost of plumbing materials. 

Gentoo said its Money Matters Team can work with customers to help them manage their money.

The service is free, and customers do not have to be in debt to use it. 

To contact them, call 0300 123 2004 or email [email protected]. Calls will cost the same as a call to a landline number and will be included as part of any inclusive minutes on your mobile phone package.