A rent hike of 6.5 per cent is being imposed by a social landlord in Dumfries and Galloway next month.
The management committee of Loreburn Housing Association – which has more than 2,500 homes across the region – said it has no option but to make the increase from April 3.
The landlord last month invited every tenant to take part in a rent consultation with two proposals on the table – an increase of either 6.5 per cent or seven per cent for the financial year 2023/24.
Almost 2,400 letters were sent out and 308 responses were received with 12.3 per cent voting for a seven per cent increase and 87.7 per cent calling for 6.5 per cent.
In a letter to tenants, Loreburn’s director of housing, Sue Irving, confirmed that after “careful consideration” of the feedback the decision was to implement the lower of the two proposed increases.
She said: “In our consultation letter we set out the reasons why a rent increase is necessary when balanced with Loreburn’s aim to keep rents as low and affordable as possible.
“Reluctantly, the 6.5 per cent increase to be applied is the minimum amount by which we can aim to minimise the impact on services from the already increased and rising costs Loreburn faces of loans, services, labour and materials. Each of these impact our ability to provide services and meet our statutory obligations.”
She also urged any tenants “worried about rent payments” to get in touch with Loreburn for help and advice or support and resources available.
The move means the average weekly rent for a four-bedroom house with Loreburn Housing Association will rise by £7.58 to £124.17. Loreburn put up its rents by two per cent for 2022/23 after price freezes in 2017/18 and 2018/19.
It said that feedback from last month’s consultation showed that 41.6 per cent of those who responded said the rents at the time were “just about affordable,” with another 10.1 per cent finding them “fairly difficult to afford” and 7.5 per cent said they were “very difficult to afford”. On the other hand, 15.6 per cent said the rents were “very easy to afford” and 25.3 per cent decided they were “fairly easy to afford.”
Last month, Loreburn Management Committee convener Russell Brown said that increasing rents by 6.5 per cent or seven per cent would be “the minimum level” at which they could still operate and continue with “at least some (though not all) of plans for investment works”.
He described the rent hike as “one of the most difficult we have faced when we consider the impact of rising costs and inflation and the financial hardship faced by many of our customers” and said: “It is our mission to keep rents affordable.
“However, if we do not increase rents, our ability to deliver services in the coming year – and beyond – will be severely impacted.
“The likely outcome is that we could only carry out essential repairs and maintenance.”
