Highland Council agrees a rent hike but repairs will still be scaled back
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Repairs will be scaled on Highland Council owned homes despite members agreeing a four per cent rent hike for the coming year.
That rise was considered inadequate by some councillors and a tenant representative who spoke at the housing an property committee because the housing repairs and maintenance budget will be left short by £708,000.
The decision was a balancing act – the service needs more cash to deal with repairs so it needs to put up rents just as much as people can afford without them going into arrears.
Members were asked to consider the various options and the differences they would make to investing in home repairs and the like ranging from a three per cent to a seven per cent rent rise.
A three per cent rise reduces the budget by £1.3 million; a four per cent rise leaves a £708,000 deficit; a five per cent hike £107,000 but on the other hand a six per cent hike in rent increases the budget £484,000 and seven per cent by £1 million.
Councillors approved a four per cent rise for 2023/24 which the local authority said is “well below the current rate of inflation” and will “help mitigate the financial challenges faced by tenants affected by the cost of living crisis.”
It means the average council house rent – as well as rents and service charges and to Gypsy/Traveller site pitches – in the Highlands will go from £79.97 per week to £83.17 per week.
Housing and property committee chairwoman Councillor Glynis Sinclair said: “The committee was faced with a very difficult set of circumstances in considering Council house rents for next year.
“Members carefully considered the affordability impacts for individuals when setting rents for 2023/24 and balanced that against the impact of cost inflation and the continuing need to fund future investment in Council housing.
“We have listened to feedback from our tenants and feel that the 4% increase agreed is the maximum rate that we can increase rents through an ongoing cost of living crisis, although we are acutely aware that we will have to cut our costs next year to balance the budget.
“This will impact on the council’s ability to drive forward planned improvement programmes; however, our economic outlook has changed significantly during the past few years, and we must navigate these testing times with caution, whilst maintaining our statutory services to tenants.”
