Council tenants in West Lothian will see rents rise by 3.5% in the new financial year.
The 3.5% increase will push the average weekly rent up by £2.81, and will cover all council rented properties, including garages.
A special meeting of the full council yesterday agreed to implement the 3.5% increase each year for the next five years. The council voted by 18 to 13 in favour of the increase and the five year programme. An SNP amendment calling for a 2.5% increase was rejected.
The average weekly rent for homes will be £83.22 in 2023/24, increasing from £80.41 in 2022/23. The equivalent weekly figure for garages is £6.26 in 2023/24, increasing from £6.05 in 2022/23.
Tenants were asked between October and December last year whether they supported a 3.5% or 4% increase for five years. It followed a similar long term plan by the previous council, also Labour minority led.
Delivering his report depute chief executive responsible for housing Graeme Struthers told the council that there was 1,765 responses to the consultation, with 1,312 (74%) of those tenants responding expressing a preference for a 3.5% per annum rent increase over the five-year period 2023/24 to 2027/28.
That response rate represented 12% of the 14,000 council tenancies in West Lothian and,Mr Struthers said, was the best response the council had received on rent consultation.
Of the respondents 50% said they do not receive any assistance towards their rent,47% indicated that they receive some or all of their rent paid through Housing Benefits or Universal Credit and 3% preferred not to answer. Of the respondents who indicated that they do not receive any assistance towards their rent, 82% indicated that their preference was for a 3.5% per annum rent increase.
Mr Struthers said that the increase was lower than many in Scotland’s other councils and also less than the rent increase proposed by other social landlords in West Lothian.
In his motion backing the increase Executive councillor George Paul said it would enable the council to maintain its investment in new house building projects and the maintenance of existing stock as well as cover the costs of maintaining services.
The council’s capital budget has earmarked spending of 157.972 million - £27.245 million on new builds and £130.727 million in existing council housing stock and the environment, to improve homes and local amenity.
Councillor Paul said: “This minority Labour Administration doesn’t underestimate the challenges for our tenants in these very difficult times, and notes the reported level of cumulative rent arrears. However, with an in-year collection rate of 97% this year to date, our tenants are to be commended for the priority they are placing on the payment of rent.”
Seconding Councillor Paul, Councillor Andrew McGuire said: “There’s a great deal of support for tenants who face financial hardship. A significant tranche of our tenants are already in receipt of housing support. Also we have the jewel in the crown of the Advice Shop helping people.
“The SNP amendment fails to recognise the complicated interplay between the revenue budget and the capital budget. If we are not bringing in money this year and we are plugging the gap with insurance funding and reserves, that’s going to leave us with less money to build more houses in the future and also, crucially, invest in the houses we have got.”
In an amendment the SNP group called on the council to restrict rent increase for homes to 2.5% and instead boost funds with a 25% increase on garage rents.
Depute SNP group leader Robert De Bold said: “The average gross annual salary for jobs per resident in West Lothian for 2022 is £30,595. The estimated number of our constituents earning below the real living wage is 18%.
“The SNP Group are aware that the one of the biggest outlays facing our constituents is rent/mortgage.”
Shortfalls could be made up from the increased garage rents and taking £423,000 from the Housing reserve which sites at just over £900,000
Both Councillor De Bold and his seconder Councillor Willie Boyle also rejected the setting of a five year plan in the face of national financial uncertainties. “We cannot tie ourselves to a programme of rent increase when uncertainties are so high, said Councillor De Bold.
Councillor Boyle said: “Given the uncertainty over inflation, interest rates, poverty, and that we have 42 % of our tenants already in debt to West Lothian Council, it is difficult to look in a meaningful way at how we are going to set rents for the next few years.”
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