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20th December 2021

The Board of the Association met on the 15th of December and considered a range of options in relation to next year’s budget and rent charges. It did so in the 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, and the current economic uncertainty.

Last year the Association did not increase rents but did say it was highly unlikely that could be afforded for another year.

Ahead of this upcoming budget year (April 2022 to March 2023) we note an October inflation figure (Consumer Price Increase , CPI) of 4.2 % and increasing prices for materials used across all trades impacting on our repairs budget.

Committed spend in the forthcoming budget year includes :
• Component replacement ( gas boilers and kitchens ) and building works £ 3.3 million
• Reactive repairs £ 521 k
• Relet repairs £ 278 k
• Cyclical maintenance £ 1.1 million

Given the relatively high CPI figure and the current economic uncertainty rather than follow the usual route of considering CPI, CPI plus 0.5%, and CPI plus 1 % this year the Board considered;
• CPI being 4.2%
• CPI minus 1% being 3.2%
• CPI minus 1.5% being 2.7%

The Board opted to recommend what they see as the lowest possible rent increase to allow the business to deliver its component replacement and repairs programme, being 2.7 %. We are keen to hear our tenant’s views on the proposed rent increase and would encourage you to complete and return the Tenant Consultation survey form when you receive it through the post or to complete the online survey here.

The rent consultation period is open until 13th January 2022 and all returns will be entered into a prize draw for £100 worth of vouchers for a local store.

If you wish to discuss the proposed rent increase in further detail please contact Karen Edgar, Housing Manager on 0141 556 6226.


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