Rent Increase. Have your say!*

Are you an Angus Council tenant? If so, we need your views on the proposed rent increase for 2024-25 and options on how your rent money will be spent.

All four options would keep your rent amongst the lowest in Scotland.

If you are having difficulty paying your rent because of the cost-of-living crisis, please contact your arrears officer as soon as possible.

Why are we proposing to increase the rent? 

We need to make sure the money we take in 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 tenants’ homes to continue to meet the Scottish Housing Quality Standard and 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, we agreed an additional set percentage with the Tenant Rent Setting Group. However, due to the current cost-of-living crisis, rent increases have been substantially below inflation for the past 2 years (1% in 2022-23 and 4.1% in 2023-24). Below inflation increases are not sustainable in the long term.

We believe freezing rents (or even a third year of an increase below inflation) 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 result in higher rent increases in the future to cover the shortfall.

The current 5-year Business Plan is based on an additional set percentage of 1%. The Business Plan has set out that 70 new homes will be built each year, as well as the following improvements to existing stock:

• 450 new heating system installations,
• 600 properties receiving external wall insulation and energy efficiency measures, and
• 700 replacement bathrooms.

We have not been able to meet all of these targets as a result of a number of factors. Material and labour costs have increased significantly, and the number of projects we can complete for the same money has reduced. Two years of below inflation rent increases have also reduced the funds available for improvement works. The Business Plan will be reviewed next year with tenant groups, which will give a more accurate picture of the financial position, and options available for improvements.

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 2024, where the final decision on a rent increase for 2024-25 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 above options have been put together with input from the Tenant Rent Setting Group, and the group recommends voting for option 1 (6.7%). Based on current projections, unless we reintroduce above inflation rent rises within 3 years (year 23-24 being year 1), there is a huge risk that we will not be able to deliver a balanced budget in the future. Options 2, 3 and 4 are above inflation and would further reduce the amount we would need to borrow to provide existing services and improvements.

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

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 14 November 2023*.

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

Rent Increase Consultation – Last Week for your vote!

Calling all Angus Council tenants!

The consultation on the rent increase for 2023/24 only runs until Friday, 4 November 2022, so you’ve still got time to register your vote.

To vote, click on the survey link and choose one of the three options.

Rent Increase. Have your say!*

Are you an Angus Council tenant? If so, we need your views on the proposed rent increase for 2023/24 and options on how your rent money will be spent.

All three options would keep your rent amongst the lowest in Scotland.

If you are having difficulty paying your rent because of the cost of living crisis please contact your arrears officer as soon as possible by phoning ACCESSLine on 03452 777 778.

What about the Rent Freeze?

We know that the Scottish Government has implemented a rent freeze on properties in the social and private rented sectors. At present, the rent freeze is only scheduled to last until March 2023, although it could be extended. We are doing this consultation based on the current situation, but if the rent freeze is extended past March 2023, the results of this consultation will not apply. If that happens, we will put more information on this blog.

Why are we proposing to increase the rent? 

We need to make sure the money we take in 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 tenants’ homes to continue to meet the Scottish Housing Quality Standard and 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 we agreed an additional set percentage with the Tenant Rent Setting Group. However, this year CPI in July was 10.1%. Due to the current cost of living crisis, we have looked at alternative options this year, as we think a rent increase of 11.1% would be unaffordable for tenants.

We believe freezing rents 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 cover the shortfall.

The current 5 year Business Plan is based on an additional set percentage of 1%. The Business Plan has set out that 70 new homes will be built each year, as well as the following improvements to existing stock: 450 gas and electric heating installations, 600 properties receiving external wall insulation and energy efficiency measures, and 700 replacement bathrooms.

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 2023, where the final decision on a rent increase for 2023/24 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.

Please choose your preferred rent rise option. The three options are:

The above options, which have been put together with input from the Tenant Rent Setting Group, are all below current levels of inflation, and would leave a shortfall over the period of the Capital Plan to 2024/25. This means that we will need to borrow more to continue to deliver existing services, and potentially reduce the 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 have 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).

If I’m struggling financially, what can I do?
We have lots of information to help people get through the current difficult period here.
 
To have your say on the rent options,
please complete the survey online by 4 November 2022*.

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

Rent Increase Consultation – Last Few Days!

Calling all Angus Council tenants!

The consultation on the rent increase for 2022/23 only runs until Wednesday 3 November, so you’ve still got time to register your vote.
To vote, click on the survey link and choose one of the 4 options.

Rent Increase. Have your say!*

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

 

 

 

Rents to Rise by 2% but Remain Amongst the Lowest in Scotland

Our Communities Committee today approved a 2% rent increase for our tenants, so that the we can continue to invest in existing homes, as well as build new affordable housing for Angus.

In the consultation with all tenants, three rent increase options were proposed by the Tenants Steering Group, and a majority of tenants who responded supported the 2% option. This will increase the average weekly rent to £72.28 per week and mean that our rents will remain as some of the most affordable in the country.

Our Communities Convenor, Cllr Mark Salmond said, “The importance of having good quality affordable homes has been brought into sharp focus in the last year by the COVID-19 emergency. We have all spent much longer periods in our homes than usual, so the improvements delivered in recent years through our Housing Capital Programme have helped mitigate some of the negative aspects. This rent increase helps us achieve a balance between maintaining rents at an affordable level, whilst also being able to continue significant investment in stock improvements and continue increasing new supply housing. And although our customer satisfaction ratings strongly indicate that our tenants agree with this approach, unfortunately we know that some of our householders still struggle with fuel bills.”

This is why our particular priority going forward is on improving the energy efficiency of our housing stock still further, not only so that we can achieve zero carbon targets, and help address the climate emergency, but so that we can combat fuel poverty and child poverty. If tenants do need help with household finances, they shouldn’t hesitate to seek Energy Advice and Welfare Rights support, both of which are available.

Energy Advice

This service is provided by the SCARF’s Home Energy Advice Team (HEAT)

Advisors can identify ways to make your home more energy efficient as well as assess your home for damp and condensation problems. They also provide general energy saving advice that can have you saving energy and money in no time

• Telephone:01224 213 005
• Website 
  

Welfare Rights

Our Welfare Rights support contact details:

• Telephone: 03452 777 778
  
• Website
  
• SMS: text Angus to 60040 (standard SMS charge applies)
  

 

Rent Increase. Have your say!*

Are you an Angus Council tenant?

If so, we need your views on the proposed rent increase for 2021/22 and options on how your rent money will be spent.

All three 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+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.

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 2021, where the final decision on a rent increase for 2021/22 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	Option 2 – Recommended by the Rent Setting Group	Option 3
Rent Level	1.75%	2%	2.25%
Capital spend (this is money invested to buy or upgrade fixed, physical, non-consumable assets, such as buildings and equipment)	Additional borrowing of an estimated £823,000 to maintain capital spend (cumulative position for 4 year period 2021/22 – 2024/25)	£18 million capital spend over the year	Reduced borrowing of an estimated £824,000 to maintain capital spend (cumulative position for 4 year period 2021/22 – 2024/25) which could be used to fund additional stock improvements
How many new builds?	Potential reduction in new build homes	70 new homes over the year	70 new homes – any additional funds will be used to improve existing stock
What stock improvements can tenants expect?	Potential reductions in stock improvements, which could mean delays to completion of the ongoing bathroom replacement programme	450 Gas & Electric Heating installations; 600 properties receiving external wall insulation & energy efficiency measures; 700 bathrooms.	In addition to planned improvements listed in Option 2, for example: 40 Gas Heating installations (including loft insulation); 40 Electric Heating installations (including loft insulation); 34 External Wall Insulations; 33 Window & Door Replacements

The tenant representatives recommend that tenants choose Option 2 which would mean a rent rise of 2%. This option is the minimum rise needed to deliver the current Business Plan without additional borrowing. 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). Unfortunately, the updated figures for 2019-20 are not yet available.

Angus Council average weekly rents

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 6 November 2020*.

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

Get Involved in Rent Setting!

We asked tenants in a recent survey:

Would you like to know more about how we spend your rent money?

Would you like to influence how rent levels are spent?

We had a huge response so we are holding our rent setting meeting online this year and our tenants are invited…

The meeting will be friendly and informal and will take place on:

Monday 12^th October

at 6:00pm

Tenants can join in by asking questions or can remain quiet and simply type in questions and comments if they prefer, whatever suits.

To find out more and book a place please contact:

bonij@angus.gov.uk

Places are limited so please book early to avoid disappointment.

Rent Setting Survey results for 2020/21

Our Rent Setting Survey was carried out earlier this year, where we asked tenants to vote for the level of rent increase they would support for 2020/21. Option 1 (3.1%) received the most votes and this will be proposed to Communities Committee in February 2020. One disappointing feature of this year’s vote was the low response – only 88 tenants. We would hope that in future tenants would appreciate the importance of this survey, since it directly affects the level of rent being paid by Council tenants.

The survey results were as follows:

• Option 1 (3.1%): 61 votes 69.32%
• Option 2 (3.2%): 13 votes 14.77%
• Option 3 (3.3%): 14 votes 15.91%

 

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Rent Rise Consultation – Last Few Days!

Calling all Council tenants! The consultation on the rent rise for 2020/21 only runs until Monday 30 September, so you’ve still got time to register your vote.

To vote, click on the survey link and choose one of the 3 options.