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4th January 2018

The Board of the Association met just before Christmas and considered a range of options with regard to next year’s budget and rent charges. It did so in the full knowledge of the current financial situation facing many of our tenants and mindful of the financial needs of the business in terms of service delivery.

The Board decided to recommend a 2.8 % rent increase in order to allow the Association to fund its expenditure and maintain a level of reserves for new build projects.

To meet the above costs the Board considered four options. To meet the business needs of the Association the Board had previously agreed a minimum rent increase of the Retail Price Indexlevel. This would allow the Association to invest, on average over £ 1 million per annum, in its existing stock and build reserves to fund future new build.
As RPI has consistently ran higher than CPI the Association last year decided it would be in our tenant’s best interests to focus upon CPI rather than RPI as the measure of inflation.

The options considered were;
1) Increase rents by the Consumer Price Index (CPI) which was 2.8% in October
(as opposed to RPI which was 4% ).
An increase of 2.8% will add £2.07 p/week to our average rent.
2) Increase rents by CPI plus 0.5% (3.3% in total).
3) Increase rents by CPI plus 1.0% (3.8% in total).
4) Increase rents by CPI plus 1.5% (4.3% in total).

While the Board recommended a 2.8% increase to meet expenditure and allow future investment the final decision will take into account your views. To that end the Board are keen to hear your views ahead of the final budget Board meeting on 24th January 2018. Please either complete the enclosed Tenant Consultation Survey Return and use the reply paid envelope to return it to the Association, or complete the on-line survey monkey by clicking here. All returns or survey monkey completions will be entered into a prize draw for £50 worth of vouchers for a local store. Please also include your mobile phone number.

The Association are holding two public meetings to discuss the above and you are welcome to attend one of them.

Monday 22nd January 2018 at 3.30pm at our offices (enter by front door)
Monday 22nd January 2018 at 6.30pm at our offices (enter by side door)


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