Rent Consultation 2022/2023
Rent Conultation 2022/2023
Surveys were sent to all 1700 SIC tenants in December 2022 asking for their feedback on the rental proposals for 2022/2023 which will feed into the rent setting report considered by Council.
Three rent increase proposals were put forward:
2.5% is the inflationary factor which was used in the modelling of the current Housing Revenue Account (HRA) Business Plan.
4.2% was the inflation rate at October 2021 which was the most up-to-date figures at the point the consultation information was put together.
3.0% represented an increase above current assumptions which would generate additional investment income.
The HRA business plan looks at the level of rent which is required, alongside use of HRA Reserve and/or borrowing to maintain a sustainable HRA over the longer term. The HRA looks to ensure that enough resource is available over the longer-term to ensure that all our properties can be maintained to the required standards.
A combination of Brexit and Covid has meant that the cost of building materials have increased well above inflation and created supply chain issues for both materials and external contractors which make the delivery of a programme of maintenance on our properties much more difficult. We will refresh the HRA Business Plan and revisit the financial modelling which underpins it during 2022/23 and seek to encourage more tenant participation in those discussions.
A total of 225 surveys were returned with the results as follows:
2.5% increase - 56%
3.0% increase - 32%
4.2% increase - 12%
We asked our tenants if they had concerns about the affordability of their rent, with the results as follows:
Yes - 38%
Some - 37%
No - 25%
The number of tenants indicating a concern on their ability to pay their rent is higher than last year’s return and we are ensuring that tenants are being advised of what support is available.
We also asked if tenants wanted to be involved in a future review of rents. Over half (52%) of those responding said that they would like to be involved. We are very pleased with response rate for this and will be contacting our tenants in the near future about this.
A high number of our tenants who responded said they had at least some concerns about the affordability of their rent. We would like to remind you that if you have any concerns about paying your rent, you should act sooner rather than later.
The Citizens Advice Bureau provide help and advice on benefits, maximising income, managing your money as well as advice on reducing energy costs. You can call 01595 694696, or email email@example.com.
Website - Shetland Islands Citizens Advice Bureau | Free, impartial and confidential advice (shetlandcab.org.uk).
If you are behind with your rent payments or worried that you can’t pay your rent, please get in touch with us as soon as possible to discuss your options on 01595 744623, or email firstname.lastname@example.org.
Website - Housing Rent – Shetland Islands Council.
Further information on How Your Rent is Spent is also available.
Our Housing Revenue Account Business Plan is also available online HRA Business Plan.