The Association is considering its budget for the financial year 2025 / 2026, and as part of this process, is consulting with tenants on what level of rent increase should be applied from 1 April 2025.
The Association is a charity which exists to provide good quality homes as affordable rents. The Association therefore always aims to keep rent levels as affordable as possible and understands the importance of finding the right balance between rent affordability and the need to deliver services and ensure continued investment in properties.
Recent years have seen busniess and maintainence costs increase to levels significantly above inflration. In addition to rising repair costs, the Scottish Government has introduced new requirements in respect to tenant and resident health and safety. These requirements have resulted in the Association incurring significant costs to ensure compliance in relation to fire and carbon monixide safety, electrical saferty and mould and dampness.
To esnure that rents are as affordable as possible, the Association has deferred full infaltionary rent increases over recent years. Between 2019 and 2023 the indivdual rent increase levels totalled 16.3% which is 3.1% lower than the lowest rate of inflation (CPIH) for the same period.
While increasing rents by less than inflation, the Association's long-term assumption is that rents keep pace with inflation. This postion has been seriously eroded and to help redress this imbalance, the Association applied a rent increase of CPIH plus 1.6% from 1 April 2024.
In order to maintain current levels of service provision, and ensure ongoing planned maintenance and investment in properties, the Association considers it necessary to continue with redressing this imbalance. The Association is therefore seeking tenant feedback in relation to the proposal to increase rent by 4.7% (CPIH plus 1.5%) from 1 April 2025.
Other rates of inflation are currently 2.3% (CPI) and 3.4% (RPI).
What should you do next?
You are invited to consider the information provided in the attached information booklet and the rent increase options detailed within our online survey.
You can complete the online survey by using the following link: https://www.surveymonkey.com/r/202526
The Association would be grateful if you could complete the survey by 5:00 pm on Monday 16 December 2024.