poundtoolssignParkhead HA 40th Anniversary Logo_rgb
12th January 2021

Each year around this time the Association makes contact to give tenants an update on what is included in the budget for the coming financial year and to carry out the required tenant consultation on any proposed rent increase.

This time round for financial year 2021 to 2022 there is no proposal to increase rents. Instead there will be a rent freeze. This recognises the unique and extreme position that we currently find ourselves in, the continued impact of austerity and with the uncertainty of Brexit ahead.

With the staff team employing some very tight budget setting and requiring some equally tight budgetary control going forward by them the Board of Parkhead Housing Association decided at the December budget meeting to impose a rent freeze.

Our normal business model requires us to consult on a rent increase taking account of inflation which will drive up the cost of repairs and office running costs. Each year we target to set some surplus to our reserves which then helps us to be able to build new properties every two / three years with minimal borrowing and hence the longer term burden of debt repayments. As well as to meet the annual investment in existing stock. Thus you will hopefully appreciate that the rent freeze is most likely a one off although in future years we would try and keep any increase as low as possible.

Should you have any comment on the above or wish detail of the budget please contact the office on 0141 556 6226 or by e mail graeme.aitken@parkheadha.org.uk.

Share

Leave a Reply