Moray Council housing rents expected to rise by 3.5%

By Hazel Lawson, Local Democracy Reporter

February 22 2023, 5:00 pm

Councillors will be able to give their views on two bioenergy plants proposed for sites near Elgin and Buckie. Image: DC Thomson

Moray Council tenants are expected to see their rents rise by 3.5%.

It will put up the average weekly payment by £2.28 from April.

However, the rise is below that recommended in Moray Council’s housing revenue business plan.

It advises rent should be based on the Consumer Price Index plus 1%.

Council house rent rise of 3.5%

That would have seen an increase of over 11%, pushing rents up an average of £7.22 a week.

Councillors will be asked to agree the changes as part of the housing budget that will be discussed at a meeting next week.

There are also plans for grass cutting charges to rise by 3.5% and for garage rent to go up by 8.5%.

A 27% rise in the cost of temporary accommodation for those facing homelessness is included in proposals.

There has been no increase on that since 2015.

Moray councillors will meet to decide the budget next week. Image: Moray Council

The housing rent increase follows a consultation with tenants that ran from 12 December to January 13.

Householders were given the choice of a 3.5% or 5% rise.

The latter would have funded a £75,000 hardship fund to help struggling tenants with the cost of living.

Around 80% of the 770 people who responded to the consultation wanted the lower increase.

However, in his report head of housing Edward Thomas warned there will need to be larger increases in future if the council is to continue its programme of repairs.

Grass cutting charges expected to increase

Mr Thomas said: “It is noted that for the second consecutive year the option preferred by tenants has been described within the consultation as being below the rate of inflation and business plan assumption.

“Therefore, a higher rent increase will be needed in future years to provide improvements and upgrades.”

He added even with the increase the council’s rents remain the lowest
among local authority landlords.

The total proposed expenditure of the housing revenue budget for 2023/24 is just over £22.8 million.

Higher rent increases needed in future

It includes spending almost £10.7 million on repairs and maintenance, over £5.5 million on management costs taking into account a 3% pay award and £63,000 on sheltered housing.

Councillors will consider the proposals at a meeting on March 1.

They will also be asked to agree the local authority’s overall budget for the next financial year.

That includes a 5% increase in council tax.