with tenants which gathered almost 3,000 responses, a 6% rent increase is being recommended in line with their views. The proposal will be considered at a meeting of the Housing and Social Wellbeing Committee on Wednesday 24th January.

The proposal, which will be considered at a meeting of the Housing and Social Wellbeing Committee on Wednesday 24th January, would mean an average weekly rent increase of £4.51 per week, and an average weekly rent of £79.74.

Perth & Kinross Council said the rent increase would pay for enhanced service levels for tenants, as well as financial pressures being faced by its Housing Revenue Account (HRA) – the ring-fenced pot of money paid to the council through rents which is used exclusively to pay for housing services.

The last three years have been a period of challenge, with the Covid-19 pandemic, rising energy costs, increased inflation & interest rates and disruption to supplies of labour and materials. As a result, our HRA is facing significant increasing costs for:

1. Materials and labour to repair, maintain and improve tenants’ homes
2. Energy costs
3. Borrowing, with interest rates increasing significantly over the last 12 months
4. Nationally agreed pay increases for staff.

The council said it also needs to pay for the implementation of Scottish Government policy such as meeting climate change obligations and carrying out electrical checks on all its properties. The proposed rent increase would cover these additional costs.

The HRA is facing total cost pressures of just under £2.7 million, which means that the rent increase for 2024/25 will be higher than in previous years. However, the council plans to use reserves of £461,000 to keep the rent increase for tenants as low as possible.

A total of 2,944 tenants responded to the consultation – 36.7% of its tenants.

Over half (58.6%) said they preferred the option of a 6% increase. This would allow the council to make new and increased investment in:

• Additional Trades Staff to support the introduction of a new evening and weekend appointment system for the Repairs Service - £90,000
• New staff to meet the requirements of compliance and service & maintenance - £332,000
• Buy Back funding of £20m over 5 years to purchase approximately 40 ex-council properties per year to boost the housing stock
• Investing in a Internet of Things project which provides tenants with free household wi-fi sensors that monitor air quality and humidity - £56,000
• Increased Estate Based Initiative funding for tenant-led neighbourhood improvement projects - £50,000
• Additional anti-social behaviour measures - £39,000
• Continued funding for digital, financial & social inclusion projects for tenants.

The council said it is aware that some tenants may be struggling with the cost of living. A wide range of support measures have been put in place by the Housing Service to support anyone who needs help.

Housing and Social Wellbeing convener, Councillor Tom McEwan, said: “We remain committed to maintaining rent levels that are affordable whilst maintaining good performance and high levels of tenant satisfaction. We would continue to have one of the lowest local authority rents in Scotland whilst being able to make important investments in Housing Services that our tenants have told us they want to see, continue to increase our housing stock and also cover the significant increasing costs that we face.

“Unfortunately, our HRA is not immune to the rising costs that everyone has experienced over the last 12 months, and as a result this year’s rent increase proposals were higher than the options we have put forward in previous years.

“We know that for many people finances are challenging at the moment, and so affordability is vital when considering any increase in rent. We carried out an assessment and found that 86% of our residents could afford our proposed rents based on their income alone, without considering any housing benefit they receive.

“We have also put in place a wide range of practical financial help for anyone who needs it. Our Tenancy Sustainment Fund and ‘Think Yes’ locality team budgets are available to support our tenants. I would encourage anyone who is finding it difficult to pay their rent to contact us on 01738 476000 to take advantage of the financial support that Housing staff and other council colleagues can provide.

“I would like to thank the record number of tenants who took part in this consultation on rent levels. It is vital to us that our tenants have a strong voice in making these important decisions. We’ll continue to work very closely in partnership with tenants to ensure we continue to deliver high quality services for them.”

If the proposed rent increase is approved by the committee, it will come into effect from April 1st 2024.