Capital expenditure of over £4.8m is planned to improve homes over the coming financial year, including increasing energy efficiency measures with new heating systems, windows, insulation and roofs. A programme of new kitchen and bathroom installations is also planned.

Around £3.9m will be spent on providing responsive and planned repairs to the entire housing stock of almost 4,000 social rented homes to ensure homes are kept wind and water tight and are fully compliant with current health and safety requirements.

Tenants and customers will continue to benefit from investment in IT systems to improve digital access to the Association’s wide range of services.

A total of £8.3m (including grant from the Scottish Government) will be invested in the delivery of new homes for social rent across the North East of Scotland.

To pay for this level of investment, the Board of Management agreed a 4.2% rise in rents for 2025/26 following consultation with tenants. The rent increase will come into effect from 1 April 2025.

All tenants were asked to consider two rent increase options of 4.2% or 5%. A response rate of 24% (951 tenants) was achieved, consistent with last year’s response. 87% of respondents selected 4.2% as their preferred increase.

For a two-bedroom property, the increase will mean an average monthly rent of £517.93 an increase of £20.88.

Craig Stirrat, chief executive of Grampian Housing Association, said: “We recognise that for many tenants, household finances are under pressure, and so affordability is vital when considering any increase in rent. We carried out an assessment and found that the vast majority of our residents could afford our proposed rents based on their income alone, without considering any housing benefit they receive.

“We remain committed to providing safe, high quality homes and maintaining rent levels that are affordable whilst maintaining good performance and high levels of tenant satisfaction. Unfortunately, the Association is not immune to the rising costs that everyone has experienced over the last few years, and as a result this year’s rent increase proposal was higher than inflation.

“Through our tenancy sustainment services and support fund, we offer a wide range of practical and financial help for tenants who need this.”

Jim Cargill, chair of Grampian Housing Association, added: “The rent increase will pay for enhanced service levels for tenants, as well as help to manage the financial pressures being faced by the Association due to the current economic climate.

“The last four years have been a period of significant challenge, with rising energy costs, inflation and interest rates. As a result, our expenditure has risen by almost 24% over the past two financial years (2023 & 2024). This is for materials and labour to repair, maintain and improve tenants’ homes; energy costs; borrowing due to interest rates increasing significantly and cost of living pay increases for staff as well as the uplift in employers National Insurance contribution.

“The Association also needs to pay for the implementation of Scottish Government policies such as meeting climate change obligations; for additional health and safety compliance requirements including tackling any reported incidences of condensation and mould, and carrying out electrical checks on all its properties. The rent increase will help to cover these additional costs.”