Rent Increase – Have your say!

Rent Increase. Have your say!*

Are you an Angus Council tenant? If so, we need your views on the proposed rent increase for 2019/20 and options on how your rent money will be spent.

All three options will keep your rent amongst the lowest in Scotland and well below what the Scottish local authority average for 2019/20 is likely to be.

Why are we proposing to increase the rent? 

We need to make sure the rent we receive is enough to pay for improvements needed to tenants’ homes and to help build new homes.

Rent increases will help protect housing services, build new homes and help us to continue to invest in our homes that meet the Scottish Housing Quality Standard. Rent increases will also allow us to work towards meeting the Energy Efficiency Standard for Social Housing by 2020.

The rent rise is partly based on the inflation measure of CPI (Consumer Price Index), as well as an additional set percentage of 1% which has been agreed between the council and tenant group. CPI+1% is the minimum rent increase required to allow us to deliver our current plans and manage inflationary rises. We need to increase the rent at least by inflation because that’s what it costs us to run the business. If we were to increase by more than 1% we could increase investment.

How is the rent increase measured?

Following feedback from tenants during the rent setting consultation last year, we have decided to use the July CPI figure of 2.5% rather than September CPI as used in the past. This allows us to outline true percentages, so that tenants have a clearer idea of how each option will affect their weekly rent charge. The council’s budget setting arrangements need to be in place for October 2018 so that everything is ready for the next financial year which starts in April 2019.

How we decide on the Increase

We’re carrying out a consultation to help tenants consider the rent increase options so they can clearly see how their rent money will be spent.

The results of this survey will be presented at the communities committee in February 2019. At this meeting the final decision on a rent increase for 2019/20 will be made.

 

Rent Increase – the options

The tenant Rent Setting Group has agreed three options which the members feel will bring benefits to tenants while keeping rents affordable.

 

The three options are:

Option 1 – Recommended by the Rent Setting Group Option 2 Option 3
Rent Level

3.5%

3.75%

4%

Capital spend (this is money invested to buy or upgrade fixed, physical, non-consumable assets, such as buildings and equipment) £18 million capital spend over the year Additional £850,000 capital to spend in addition to Option 1 Additional £1.7m capital to spend in addition to Option 1
How many new builds? 70 new homes over the year 70 new homes – any additional funds will be used to improve existing stock 70 new homes – any additional funds will be used to improve existing stock
What stock improvements can tenants expect? 450 Gas & Electric Heating installations;

600 properties receiving external wall insulation & energy efficiency measures;

700 bathrooms.

 

 

 

In addition to planned improvements listed in Option 1, for example:

39 Gas Heating installation (including loft insulation);

13 Electric Heating installations (including loft insulation);

37 Kitchen Replacements;

58 Bathroom Replacements;

7 External Wall Insulation;

42 Window & Door Replacements.

In addition to planned improvements listed in Option 1, for example:

78 Gas Heating installation (including loft insulation);

26 Electric Heating installations (including loft insulation);

73 Kitchen Replacements;

117 Bathroom Replacements;

14 External Wall Insulation;

84 Window & Door Replacements.

The tenant representatives recommend that tenants choose Option 1 (the lowest option), which would mean a rent rise of 3.5%. This option is considered to be the minimum level of income needed to deliver the current Business Plan. It, along with Scottish Government grant funding, would enable us to build 70 new homes in 2019-20, as well as these improvements to existing stock: 450 Gas & Electric Heating installations, 600 properties receiving external wall insulation & energy efficiency measures, 700 bathrooms.

The graph below shows the average weekly rents of Angus Council over the past five years compared to other neighboring local authorities (figures from Scottish Housing Regulator). All three options would keep rents affordable, keeping average rents in Angus amongst the lowest in Scotland, and well below what the Scottish local authority average for 2019/20 is likely to be.

rent increase graph

How the rent increase of 3.5% would affect average Angus Council weekly rents

Average weekly rent 2017/18 Average weekly rent 2018/19 Average weekly rent 2019/20
Bedsit

£51.47

£53.52

£55.40

1 Bedroom

£58.86

£61.21

£63.36

2 Bedrooms

£65.63

£68.25

£70.64

3 Bedrooms

£75.44

£78.46

£81.21

4+ bedrooms

£90.98

£94.62

£97.93

Angus Average

£64.64

£67.22

£69.58

 

To have your say on the rent options,

please complete the survey online by 30th September*.

 

*Please note this consultation is open to current Angus Council tenants only

 

One thought on “Rent Increase – Have your say!

  1. Pingback: Photos from Last Week’s Housing Day event in Forfar | Angus Council Housing News

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