Are you an Angus Council tenant? We need your views on what the rent increase should be in 2020/21 and how your rent money should be spent.
The three options outlined below will continue to keep your rent amongst the lowest in Scotland.
Why are we proposing to increase the rent?
We need to make sure the rent money we receive is enough to pay for existing services, such as repairs, but also to pay for larger improvements needed for tenants’ homes and to help build new homes.
Rent increases allow us to invest in our homes to continue to meet the Scottish Housing Quality Standard. and to meet 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 us and the Tenant Rent Setting Group. CPI+1% is the minimum rent increase required to allow us to deliver our current plans and manage inflationary cost rises. We need to increase the rent at least by inflation because that’s what it costs us to deliver existing services. If we were to increase by more than 1% we could also increase investment in tenant homes.
How we decide on the Increase
We’re carrying out a consultation to help tenants consider the rent increase options and clearly see how the rent money will be spent.
The results of this survey will be presented at the Communities Committee in February 2020, where the final decision on a rent increase for 2020/21 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 | 3.1% | 3.2% | 3.3% |
| 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 £340,000 capital to spend in addition to Option 1 | Additional £680,000 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:
20 Gas Heating installation (including loft insulation); 20 Electric Heating installations (including loft insulation); 10 External Wall Insulation; 11 Window & Door Replacements. |
In addition to planned improvements listed in Option 1, for example:
40 Gas Heating installation (including loft insulation); 40 Electric Heating installations (including loft insulation); 20 External Wall Insulation; 22 Window & Door Replacements. |
The tenant representatives recommend that tenants choose Option 1 (the lowest option), which would mean a rent rise of 3.1 %. This option is the minimum rise needed to deliver the current Business Plan. It, along with Scottish Government grant funding, would enable us to build 70 new homes in 2020-21, 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 neighbouring local authorities (figures from the Scottish Housing Regulator).
How a rent increase of 3.1% would affect average Angus Council weekly rents
| Average weekly rent 2018/19 | Average weekly rent 2019/20 |
Average weekly rent 2020/21 |
|
| Bedsit | £53.25 | £55.11 | £56.82 |
| 1 Bedroom | £61.79 | £63.95 | £65.94 |
| 2 Bedrooms | £69.48 | £71.91 | £74.14 |
| 3 Bedrooms | £78.56 | £81.31 | £83.83 |
| 4+ bedrooms | £96.60 | £99.98 | £103.08 |
| Angus Average | £67.99 | £70.37 | £72.55 |
To have your say on the rent options,
please complete the survey online by 30 September*.
*Please note this consultation is open to current Angus Council tenants only
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