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 2 – Recommended by the Rent Setting Group
|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;
|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