Highland Council agrees 8% rent hike amid concerns about ‘affordability’ as loan charges consumes 43% of the budget while 31% goes on repairs and maintenance
By Scott MacLennan and William Angus, Local Democracy Reporter
Most of the revenue from Highland Council’s just agreed eight per cent rent hike will go to paying loan charges branded a “significant burden” by officials.
The council advised members that it would be able to ramp-up repairs and maintenance – which is consistently among the top priorities of tenants.
But it also conceded that raising rents would also mean that a significant proportion would be used to service loans.
The increase will mean rent will go up by an average of almost £30 a month with council officials claiming that will have “minimal” impact on those paying it despite a similar rise last year.
The projected budget for the next financial year makes clear that the payments for loans is expected to account for £32.5 million.
That is 43 per cent of the whole housing revenue budget while the amount spent on repairs and maintenance stands at just 31 per cent or £23.2 million.
A breakdown of how the rest of the money is spent shows supervision and management consumes 15 per cent and central administration seven per cent.
Tenants top three priorities are repairs done quickly and when promised; energy efficiency, heating or insulation upgrades; and replacing windows and doors.
A council report indicates that the current rent average of £82.84 per week is “well below” the £98.99 existing national rent average.
However, with the latest increase now agreed, average rents in the highlands will now increase to £96.96 per week on the 1st April.
Inverness West Councillor Alex Graham proposed a smaller increase of 5.96 per cent to “lighten the burden” of a rent increase on tenants.
To cover the smaller increase, wall insulation and double glazing projects on 130 houses would have been delayed.
Leader of the opposition Alasdair Christie said: “Opportunities for people to increase their income by eight per cent are almost non-existent.
“It’s just not going to happen. An eight per cent increase in my mind… it’s totally unacceptable”
Councillor Michael Gregson said the consultation process had “steered people towards voting for [an eight per cent increase] because there were no lower options.”
One of Highland Council’s tenant representative also did not support the eight per cent increase, and remarked: “We have tenants who are suffering.”
Council leader Raymond Bremner responded to the concerns raised.
He asked councillors to consider the reductions in heating bills for tenants who will have better insulation, paid for by a “reasonable” eight per cent increase.
He added: “Highland Council is still taking an approach that protects our tenants as well as trying to balance the future investment in their properties and keeping them warm.”
The eight per cent increase was voted in by nine votes to five with two councillors abstaining.