Rent Level Options for 2021/22

Closed 24 Dec 2020

Opened 20 Nov 2020

Feedback updated 9 Feb 2021

We asked

Tenants were asked to vote on three rent level options for 2021/22: 

Option 1

  • A rent increase of 1% that would simply cover the existing costs of running the HRA for 2021/22.  The running costs of the HRA include items such as general inflation increases, bad debt provision and staffing costs.

Option 2

  • A rent increase of 1% that would cover the existing costs of running the HRA for 2021/22 and also give us funding for:
    • Additional digital and financial support for tenants: - £150,000 *
    • A new Social Inclusion Support Service - £50,000 * 

(* both for a 2-year period )

Under this option the enhanced services would be paid for through some small changes to budgets and services:

    • A reduction in the Estate Based Initiatives Budget of £150,000 (this would leave a budget of £150,000 for this work, which would continue).
    • General efficiencies of £30,000 (this proposal would not impact on our current level of services).
    • A reduction in the Tenant Participation Budget of £20,000 (. TP work would continue at the level currently provided).

Option 3

  • A rent increase of 1.7% that would cover the existing costs of running the HRA for 2021/22 and also give us funding for:
    • Additional digital and financial inclusion support for tenants: - £150,000 *
    • A new Social Inclusion Support Service - £50,000 * 

(* both for a 2-year period)

Under this option the investment in enhanced services would be funded by the rent increase alone, and not by any changes to existing services.

You said

Option 2 was the preferred options for our tenants, with 38% of the vote.

We did

A paper containing the proposed rent level for 2021/22 (option 2) was considered by Housing and Communities Committee on Wednesday 3rd February, and was approved by elected members.

Results updated 9 Feb 2021

From our 7,680 households a total of 1,282 tenants responded to the survey in November/December2020. This is a 2.4% increase on the rent consultation held in 2019.

The results were as follows:

  • Option 1 (30% of votes)
  • Option 2 (38% of votes)
  • Option 3 (32% of votes)

So as you can see, Option 2 was the preferred options for our tenants:

  • A rent increase of 1% that would cover the existing costs of running the HRA for 2021/22 and also give us funding for:
    • Additional digital and financial support for tenants: - £150,000 *
    • A new Social Inclusion Support Service - £50,000 * 

(* both for a 2-year period )

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 ensure that we continue to meet our duties to you as a landlord, respond to your priorities as tenants and maintain high levels of service delivery.   

However, as you will be well aware both our tenants and the Housing Service have faced unprecedented challenges this year. For the last seven months we have had to focus on meeting Scottish Government Guidance and providing critical services to make sure that all tenants have been supported to stay safe, secure and healthy through the Covid-19 pandemic.

The pandemic has completely changed the way we work and it has had an impact on all of the day-to-day housing activities we carry out. Rent setting is one area where a different approach has been necessary. It has been important for us to reflect on the significant impacts of Covid on tenants before putting forward any proposed rent options. As you will see from the information below, we have made a commitment to keeping next year’s rent increase to a minimum level.

Why we are consulting

As a result of the pandemic our normal approach has not been possible. Your housing staff have had to focus on responding to the pandemic, and we haven’t been able to hold a conference or have any face-to-face engagement events.

Despite this, it remains very important to us that you have a say in your rent levels for 2020/21.

In previous years you have voted on rent options based on an increasing level of service provision, each reflecting higher levels of rent. This year tenants have the opportunity to vote on three rent level options and decide if they should be funded from new rent money or through a reduction in other areas of service delivery.

Once we have received your votes the information will be included in a rent setting report to our Housing & Communities Committee in January 2021, when a final decision will be made.

If you have any questions, would like to speak someone to discuss this or you would like support to complete this consultaion please contact your Locality Housing Team on 01738 476000 (Option 2) or email HNeighbourhoodServices@pkc.gov.uk  

What happens next

We will share the results of the consultation and tenants' preferred rent level option in January 2021.

The results of this consultation will then be included in a rent setting report to our Housing & Communities Committee in January 2021, when a final decision will be made.

 

Areas

  • All Perth & Kinross

Audiences

  • Tenants and Residents Associations

Interests

  • Affordable Housing