Are you an Angus Council tenant? If so, we need your views on the proposed rent increase for 2022/23 and options on how your rent money will be spent.
All four options would keep your rent amongst the lowest in Scotland.
Why are we proposing to increase the rent?
We need to make sure the money we receive from rent is enough to pay for existing services, including 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. Rent increases will also allow us to meet the Energy Efficiency Standard for Social Housing.
The rent rise is partly based on the inflation measure of CPI (Consumer Price Index), and in recent years an additional set percentage of 1% had been agreed between us and the Tenant Rent Setting Group. CPI in July was 2%. 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 deliver existing services. However, following feedback received last year we have considered some alternative options with input from the Tenant Rent Setting Group.
Freezing rents is not a viable option as this would not provide enough income to pay for existing services and repairs. It would result in services being reduced, and we would also not be able to make improvements to existing stock, for example energy efficiency improvements. A rent freeze would likely result in higher rent increases in future to enable us to cover the shortfall.
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 2022, where the final decision on a rent increase for 2022/23 will be made.
Rent Increase – the options
The Tenant Rent Setting Group has agreed four options which the members feel will bring benefits to tenants while keeping rents affordable.
Please choose your preferred rent rise option. The four options are:
The tenant representatives recommend that tenants choose Option 2 which would mean a rent rise of 2.5%. This option would require additional borrowing of £0.961 million to deliver the current Business Plan. It, along with Scottish Government grant funding, would enable us to build 70 new homes in 2022-23, as well as these improvements to existing stock: 450 Gas & Electric Heating installations, 600 properties receiving external wall insulation & energy efficiency measures, 700 bathrooms.
Options 1, 2 and 3 would leave a shortfall over the period of the Capital Plan to 2024/25. This would need to be funded by additional borrowing or a reduction in Capital expenditure, for example fewer energy efficiency improvements to homes. Additional borrowing to cover this shortfall would reduce the amount of money we can borrow longer term across the next 30 years. This may mean that there would habe to be higher rent rises in future years to cover the shortfall.
The graph below shows our average weekly rents over the past six years compared to other neighbouring local authorities (figures from the Scottish Housing Regulator).
Angus Council average weekly rents table
How the rent increase options would affect average Angus Council weekly rents
To have your say on the rent options, please complete the survey online by 3 November 2021*.
*Please note this consultation is open to current Angus Council tenants only