Consultation on rent increase 2019-20

Angus Council is carrying out a consultation on the rent increase 2019-20 to help tenants consider the rent increase options so they can clearly see how their rent money will be spent. We need to make sure the rent we receive is enough to pay for improvements needed to tenants’ homes and to help build new homes.

Why rents will rise

We and the tenants on the Rent Setting Group believe it is important to avoid cutting services and to continue to invest in our homes to ensure they all meet the Scottish Housing Quality Standard. We also strongly believe the council should continue its programme of new house building, to help increase the number of council homes available. A rent increase is needed to make sure there is enough money to do these things.

Rents will remain affordable

We will base the rent rise partly on the inflation measure of CPI (Consumer Price Index) of 2.5% from July 2018, as well as an additional set percentage agreed between the council and tenants. We use the July CPI figure because the council’s budget setting arrangements need to be in place by October 2018 so that everything is ready for the next financial year which starts in April.

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:

• 3.5%
• 3.75%
• 4%

The tenant representatives are recommending that tenants choose Option 1 (the lowest option), which will mean a rent rise of 3.5% (July CPI of 2.5% + 1%). This option is considered to be the minimum level of income needed to deliver the current Business Plan. It, along with Scottish Government grant funding, will enable us to build 70 new homes in 2019-20, as well as these improvements to existing stock: 450 Gas & Electric Heating installations, 600 properties receiving external wall insulation & energy efficiency measures, 700 bathrooms.

All three options would keep rents affordable, keeping average rents in Angus amongst the lowest in Scotland, and well below what the Scottish local authority average for 2019-20 is likely to be.

The results of the consultation will be taken into account when the committee makes a final decision on rents in February 2019.

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