PHA Launch Rent Consultation
The Parkhead HA Board met on 20th December, reviewed the draft budget for financial year 2024 / 25, and are recommending a rent increase of 5 % to fund this budget and meet the accompanying financial covenants which our lenders insist on. PHA’s successful business model of setting an annual budget and then following it which allows repairs to and investment in our stock and also creates a small year on year surplus to be accrued has allowed a new build programme to deliver 240 properties over the last ten years with another five new build projects being worked up. While appreciative of the ongoing cost of living crisis impacting on our tenants the Association has been faced by ever increasing price increases from contractors and higher interest rates for previous borrowings. Restricting the rent increase has meant a small deficit as opposed to a surplus for this and last year.
Previous years
The table below shows that the PHA rent increase has been below the Scottish Average in each of the last three years and averages 1.73 % against the Scottish Average of 3.1 %.
| Year | PHA % rent increase | Scottish Average % rent increase |
| 2023/24 | 2.5 | 5.1 |
| 2022/23 | 2.7 | 3.0 |
| 2021/22 | 0 rent freeze | 1.2 |
The proposed rent increase for 2024 / 25 at 5 % compares favourably with what we are aware others are proposing for their budgets. In our most recent Tenant Satisfaction Survey 82 % of those responding said that their rent was good value for money.
What is in this year’s budget ?
The budget for the year 2024 / 25 includes:·
- Reactive repairs (day to day repairs) £ 700k
- Void works (empty properties) £ 370k
- Cyclical repairs £1.1 million
- Component replacements £2 million
- Salaries £1.8 million
- Loan repayments £902k
- Interest payments £975k
- The component replacements include :· 130 gas boilers· two roofs and associated fabric works· windows at 180 properties· door entry at 8 closes
What we are asking you to do
We are asking that you consider the above details and proposal and then complete the survey below.
All replies will be entered into a prize draw for a £ 50 voucher. We will draw out three names for the vouchers.
To access the survey please click here.
