Rent Level Options for 2024/25

Closed 22 Dec 2023

Opened 23 Oct 2023

Contact

Scott Watson

(Communications Officer)

Business and Resources, Housing and Environment

07720398531

ScottWatson@pkc.gov.uk

Feedback updated 24 Jan 2024

We asked

What our tenants thought the rent level increase should be for 2024/25, based on proposed investment in Housing Services and the financial pressures facing the Housing Revenue Account (HRA).

You said

A total of 2,944 tenants responded to the consultation – 36.7% of our tenants.

Over half - 58.6% - chose a 6% rent increase from the three options presented.

We did

As the majority of tenants preferred a 6% rent increase, this was proposed in a report to a meeting of the Housing and Social Wellbeing Committee on 24th January 2024.

Councillors accepted the proposal, and a 6% rent increase will come into effect from 1st April 2024.

Results updated 24 Jan 2024

A total of 2,944 tenants responded to this consultation – 36.7% of our tenants.

This was the biggest ever response to our annual rent level survey and compares to 2,625 responses last year.

Every tenant household (8,021 properties) was sent a Rent Level Options consultation form in October 2023 presenting three options for 2024/25 rent levels, and what each option meant for their housing services. Tenants were asked to respond with their preferred option from a choice of:

  • 6% rent increase (58.6% of tenants chose this)
  • 6.25% rent increase (21,8% chose this)
  • 6.5% rent increase (19% chose this)

So, over half (58.6%) said they preferred the option of a 6% rent increase for 2024/25. This information was included in a report to Councillors on the Housing and Social Wellbeing Committee that was considered on 24th January 2024.

The report recommended a 6% rent increase for tenants and this was agreed by the committee. 

This will allow us to make new and increased investment in:

  • Additional Trades Staff to support the introduction of a new evening and weekend appointment system for our Repairs Service - £90,000
  • New staff to meet the requirements of compliance and service & maintenance - £332,000
  • Buy Back funding of £20million over 5 years to purchase approximately 40 ex-Council properties per year to boost our housing stock
  • Investing in our Internet of Things project which provides tenants with free  household wi-fi sensors that monitor air quality and humidity - £56,000
  • Increased Estate Based Initiative funding for tenant-led neighbourhood improvement projects - £50,000
  • Additional anti-social behaviour measures - £39,000
  • Continued funding for digital, financial & social inclusion projects for our tenants.

The new rent level for 2024/25 takes effect from 1st April 2024.

Tenants’ rents will also pay for a planned investment programme of £97.5 million in their homes over the next five years. Feedback from tenants has influenced these spending priorities, which include the following measures to comply with the Scottish Housing Quality Standard (SHQS):

  • Scottish Housing Quality Standard future developments - £26.1 million
  • Kitchens and bathrooms - £3.5m
  • Central heating - £3.4m
  • Rewiring/infrastructure/property refurbishment - £1.7m
  • Multi-storey flats refurbishment - £1.8m
  • External fabric works - £0.3m
  • Energy efficiency works - £0.4m
  • Structural works - £0.8m
  • Sound insulation - £0.1m

Links:

Overview

Each year, in partnership with our tenants, we review the rent levels we charge for the Housing Services we provide. These annual reviews are necessary to ensure that we continue to meet our duties to you as a landlord, respond to your priorities and maintain high levels of service delivery.

For the seventh year we are consulting and engaging with you over the level of rent to be set for the next year - 2024/25. We want to give all tenants a voice in decisions that affect you, your home, and the services that you receive. By taking part you can have a chance to win one of three £50 high street shopping vouchers.

This year, as in previous years, three options are being proposed based on the feedback we have received from tenants, as well as costs facing by the Housing Revenue Account (HRA). The HRA is a ring-fenced pot of money paid to us through your rents. The HRA is used to pay for your housing services, and cannot be spent on anything else. 

Like most businesses, we are experiencing significant financial pressures due to an increase in costs for many things such as stock, supplies, high interest rates  and energy costs. To ensure we have enough money to maintain your home and meet our landlord obligations to you, we need to increase our rents to cover these increases.

How we consult on rent setting

Each year, we send out a questionnaire to all tenants in April asking you what your priorities are for housing services. We then use this feedback to develop a range of options for increased investment in your home and new and improved ways of delivering housing services. This is followed by our Summer Tenant Roadshows which are held in our communities where we have further discussions with tenants about your priorities, and then Autumn Tenant Roadshows where tenants are presented with three rent increase options based on what you have told us. After the Autumn events, voting forms and information about the rent increase options are sent to each tenant asking you to vote for your preferred rent level option.

Why your views matter

Rent setting is one of the most important decisions that we take each year, and because it affects all tenants it is vital that you are given the opportunity to have your say. We want to give all tenants a voice in decisions that affect you, your home, and the services that you receive.

It’s important that we let you know the impact the proposed options for 2024/25 will have on the services we deliver for you, and on the level of rent you will pay. 

Please read the following information carefully and then vote for your preferred rent level.

 

 
 

What happens next

The results of this consultation will be presented to the Council's Housing and Social Wellbeing Committee in January 2024.

A report to the committee will include details of the preferred rent level of tenants, and make a recommendation about the rent level for 2024/25.

Based on the report, Councillors will make a decision on the level of rent tenants will pay for 2024/25, and the new rent level will come into effect from April 2024.

 

Areas

  • All Perth & Kinross

Audiences

  • Tenants and Residents Associations

Interests

  • Social Housing