Consultation on Annual Rent Increase

Consultation on Annual Rent Increase

 

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Weslo is currently considering the 2016/2017 rent increase and we are interested in your views. We are proposing a rent increase of 3.2%

Full information can be found on this page, and you can give us your views via our online survey here

At this time every year, we review our rent charges before they change on 1st April.  Setting rents requires finding the right  balance between income from the rent and the money needed to run and improve the service expected by our tenants.

The timetable  for this process is as follows:

Date Activity
9 January 2017 Tenant consultation process begins Information leaflet to all tenants
18 January 2017 Consultation with the tenant participation committee. Open meeting and tenants are welcome to attend
20 January 2017 Consultation period ends and survey information collated
1 February 2017 Budget assumptions (including rent increase) presented at board for approval
March 2017 Formal notification of rent increase to all tenants
April 2017 New rent charge applied effective from 1/4/17

 

Pressure on rent

Weslo is committed to keeping the rent increase as low as we possibly can to keep our rents at an affordable level. When reviewing rents we need to take into account a number of factors including

The views of the tenants

The need to preserve or enhance Customer service

The cost of bringing all our Properties up to the Scottish Housing Quality Standard (SHQS) and the energy efficiency standard (EESSH)

The ongoing costs of managing and maintaining our houses

▪  The affordability of rents for our tenants

Inflation

 

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How is the rent calculated?

The proposed rent increase will be a continuation of our commitment to limit the rent increase to no more than the rate of inflation plus 1%. Based on the November inflation rate of 2.2%, we are assuming a rent increase of 3.2%.

Looking to the future, the proposed increase of 3.2% will support our commitment over the next 10 years to invest a further £12—13m in maintaining and improving the condition of your home and our housing stock.

Do our rents represent good value?

In our 2016 tenant satisfaction survey we asked tenants “taking into account the accommodation and services Weslo provides, do you think the rent represented good value for money” 84% of our tenants felt that the rent represented very good or fairly good value for money.  This compares favourably with the Scottish average of 79% for RSLs.

How will this rise affect my rent?

The table below shows the average rent figures across our area for different house sizes, the proposed rent increase and the monthly rent.  This should give you an indication of what the rise would mean for you.

Property Size Average  Monthly Rent Rent Increase New  Average Monthly Rent
1 Apt £233.05 £7.45 £240.50
2 Apt £284.74 £9.10 £293.84
3 Apt £305.93 £9.79 £315.72
4 Apt £332.84 £10.66 £343.50
5 Apt £383.85 £12.26 £396.11

 

What would happen if we set lower increase?

A Lower rent increase could lead to

▪ A reduction in our service levels

▪ A reduction in our commitment to improve you homes in the future

▪ Higher rents in the future in order to maintain homes to SHQS/EESSH standard and service our loan portfolio

Can I get help with my rent increase?

You may be entitled to help with your rent, if you are  unsure if you would qualify please contact your Housing Officer who will be able to assist you.