River Clyde Homes proposes to limit rent increase to 0.7 per cent
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River Clyde Homes is asking customers to support proposals to restrict next year’s rent charge increases to the rate of inflation.
At last year’s rent consultation, the majority of customers who responded agreed with proposals to restrict rent increases for three years to the level of inflation (or RPI - the Retail Price Index).
Many housing associations use the October inflation figure as the basis of the annual rent setting and that figure has been announced as 0.7 per cent. This means the rent increase next year will be minimal but the association is still planning, by being more efficient with its finances, to deliver the changes and improvements customers have said they want to see.
Consultation over charges for wardens, caretaking services and factoring will take place separately with the relevant customers.
An example of how a 0.7 per cent increase would affect a typical tenement property:
Stephen McCabe, who chairs the River Clyde Homes audit and finance committee, said: “This is the lowest rent increase we’ve ever proposed. Last year we promised to restrict increases to the rate of inflation because we know that many customers are still feeling the effects of the financial downturn. We have to balance that with their aspirations for the services we deliver and the improvements customers say they would like to see.
“Restricting rent increases to inflation (RPI) will still allow River Clyde Homes to improve services including: spending over £4 million a year on our repairs service and continue to invest in supporting our change programme to improve our services. It will also allow us to complete our ambitious programme of bringing all homes to the Scottish Housing Quality Standard, spend over £1m a month to regenerate neighbourhoods in Inverclyde over the next two years and invest over £1m for energy efficiency and environmental improvements.”
He added: “We hope customers will let us know what they think of the proposals by completing the freepost card being sent with the Christmas edition of our customer magazine, dropping into one of our offices to complete a card or using the online questionnaire on our website.”
Each customer is being sent a consultation card. All they have to do is give their response and return the card to the freepost address. Each response will be entered into a prize draw with one customer having the chance of winning a £50 shopping voucher.
Customers can also participate in the consultation using an online questionnaire here. The deadline for responses is Friday 8 January 2016.
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