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Daily Record
Daily Record
National
Stephanie Brawn

Renfrewshire council tenants facing two per cent rent hike amid plans for £242million investment in housing

Council tenants are facing an average weekly rent increase of two per cent amid the cost-of-living crisis.

The proposed hike has been outlined in papers prepared for next week's full council meeting as bosses plan to pump £242million into housing over the next five years.

If the plans get the go-ahead, it means the average weekly rent for a two-bed property would rise from £89.59 to £91.38, with an annual bill coming in at £4,751.76.

Heather Kay, manager of the Paisley-based Star Project charity which helps people in poverty, has said while the rise may not seem huge in isolation, it could push people's finances over the edge with energy and food prices climbing rapidly too.

She said: "On top of everything else, this proposed rent rise is disappointing.

"It's not that much on its own but the cost of living is increasing and wages are not and we've just been through two years of astronomical hikes of people affected by poverty.

"People who have never really had to access benefits are now finding themselves in a position where they cannot eat or heat their home.

"So while I appreciate why this is happening, and I know the council wants to do a lot with housing, this is not the time for it. People are living hand to mouth."

Council chiefs have plans to inject £242.68million into housing from now until the end of 2026/27 (Dominic Lipinski/PA)

Interviews were carried out over the phone with tenants alongside an online survey and the vast majority (93 per cent) were in favour of an increase of two per cent or more.

Almost half of those surveyed agreed with a two per cent rise, a third suggested it should be 2.5 per cent and 14 per cent insisted it should go up by three per cent.

Just seven per cent of tenants argued their rent should not go up this year.

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Council chiefs have plans to inject £242.68m into housing from now until the end of 2026/27 which includes allowances for new-build homes.

As part of the consultation, tenants called for further investment in existing housing, more new-build homes and improvements in the energy efficiency of properties.

There are 12,214 council houses in Renfrewshire with works underway to deliver new 39 homes in Auchengreoch Road in Johnstone and 101 across Tannahill and Ferguslie Park.

Documents state the proposed rent increase will generate an additional £998,000 of income which will partially fund proposed increases in expenditure across employees and property costs.

Bosses are planning to increase the budget for giving void properties a makeover by £300,000 after costs and demand exceeded last year's budget and an allowance for inflation is set to be added to the repairs and maintenance pot.

Finance chiefs are also having to make allowances for pay inflation and have proposed a temporary increase in staffing resources to speed up works on void properties that suffered setbacks during the pandemic.

The meeting report says: "The rental income generated by the Housing Revenue Account (HRA) must support service delivery, the costs of appropriately maintaining the housing stock and the loan debt-related costs to service the capital investment required in HRA assets.

"The main categories of planned investment programmes are external improvements which include the renewal of roofs, internal improvements including replacing or upgrading kitchens, bathrooms, wiring and heating systems and multi-storey and sheltered housing improvements.

"Other investment will include disabled adaptations, asbestos removal, rotworks and the delivery of the final stages of investment relating to smoke, heat and carbon monoxide detectors."

More than £27m of investment is planned for the coming year followed by almost £50m next year and more than £60m in 2024/25.

In the next 12 months, 600 homes will get external fabric upgrades, 220 will get replacement kitchens, bathrooms and rewiring, while 250 will have their heating renewed.

Councillors will discuss the proposals and decide whether to approve them at the meeting which starts at 9.30am on Thursday.

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