Annual Rent Review 2016-17
Date Posted: 18th of March 2016
After considerable deliberation and an extensive consultation exercise, the Management Board have approved a rent increase of 1% for the year 2016/17 that will take effect from April, 2016.
The Board were consciously aware that the current economic climate remains very challenging for the Association and for its residents. Having considered all the options the Board felt that the increase struck an appropriate balance between maintaining sufficient income to deliver our services, to invest in improving existing homes and to continue to develop new properties whilst, at the same time, keeping rents affordable and comparable with other landlords.
They noted that the proposed Budget for 2016/17 included close to 35% (£5.3M) of rental income being spent on maintenance, including the regeneration of 70 properties at Newhouse Road, Perth, and building 80 new homes.
The Board, taking account of all of these issues, decided to approve a rent increase of 1% for 2016-17.
The approved rent increase was also one of the lowest across Scotland, see tables below, continuing the trend that our rent increase has been at the lower end of the scale and considerably lower than the Scottish average.
Comparable rent increases
Association 2014/15 2015/16 2016/17
Bield 4.2% 3% 1.9%
Hillcrest 3.6% 2.8% 1.7%
Cairn 2.9% 3% 3%
Angus 3.6% 2.8% 1.7%
Caledonia 2.7% 2.2% 1%
National Ave 3.6% 2.7% N/A
During our consultation 89% of respondents felt their rent represented value for money.
We ran prize draws for the rent policy consultation and the rent increase consultation and we are happy to announce the Winner of the Rent Policy consultation £50 prize draw is Mr & Mrs Givens, Longforgan and the Winner of the Rent Increase consultation £50 prize draw is Mr & Mrs McArthur, Inverness.
Well done and thank you to everyone that took part - your opinions are really important to us.