Highland Councillors To Consider Rent Increase Of 7.95% Equivalent To £6.68 Per Week

23rd January 2024

The Housing and Property committee of Highland Council will meet on 31 January 2024 to consider the rent increase for 2024/25.

As with many aspects of cost of living the increase proposed of 7.95% Equivalent To £6.68 Per Week will come hardon the heels of many other increases in costs for household budgets.

From the council report
This report:
• Confirms that Highland Council rents continue to be significantly lower than the national average for registered social landlords;
• Provides a brief description of the way the Housing Revenue Account operates and considers the external factors affecting Housing Revenue Account financial planning;
• Sets out estimated Housing Revenue Account running costs for 2024/25 and the implications for service delivery of the recommended rent increase of 7.95%;
• Estimates income from rents and service charges based on the recommended rent increase of 7.95% equivalent to £6.68 per week;
• Describes the tenant consultation process and the outcome of consultation on different rent increase options.

Members are invited to:
(i) APPROVE a 7.95% rent increase which will result in an increase of £6.68 in the average weekly Council house rent from £83.17 to £89.85 per week. This increase for 2024/25 would still be lower than average Council house rents in Scotland for 2023/24;
(ii) NOTE the above rent increase will be applied to all residential HRA rents and service charges, to Gypsy/Traveller site pitches and to non-HRA rents for leased properties (subject to lease agreements);
(iii) APPROVE the increase to £15 per week in the new build supplement service charge to tenants moving into new build housing from 1 April 2024;
(iv) NOTE the current strategic review of the Housing Revenue Account which will enable Committee in 2024 to agree long-term rental increases in line with a revised Housing Revenue Account Capital Plan.

Read the full paper HERE