Housing Revenue and Capital Account Budget 2024/25
| Title | Housing Revenue and Capital Account Budget 2024/25 |
|---|---|
| Resource | Housing and Technical |
| Aims and objectives | The proposals to increase council house rents for 2024/25 will impact on current tenants, future tenants, residents of gypsy/traveller sites and residents who rent lockups from the council. The scope of those affected by the increase will include people across those protected characteristics groups as defined by the Equality Act 2010. The proposal, if approved, will increase rents for South Lanarkshire Council tenants by 6.5% for 3 years, reviewable annually. This represents a £5.13 rise to the average weekly rent. Given the higher concentration of deprivation and poverty within the social rented sector, financial assistance is available to those who quality for Universal Credit or Housing Benefit. There are also a range of other financial supports with a key focus on tenancy sustainment due to the cost of living crisis. The Resource has taken account of the potential for socio-economic inequality due to implementing the rent increase and is committed to fully consulting on the proposals which are agreed by elected members. |
| Conclusion | South Lanarkshire Council’s Housing Revenue and Capital Account Budget Report 2024/25 and specifically the proposals relating to £100.988m Housing Capital Investment Programme will help to improve the lives of tenants and residents within South Lanarkshire and the wider community by mitigating poverty and socio-economic disadvantage. The 30-year HRA Business Plan has been developed to reflect investment priorities of maintaining the housing stock to the Scottish Housing Quality Standard (SHQS). In working towards the new Energy Efficiency Standard for Social Housing (EESSH2) by 31 December 2032, 7.1% of the Council’s housing stock is now compliant with this. Key investment activities and priorities in relation to the Housing Capital Investment Programme include central heating upgrades and installations, external fabric upgrades, external wall insulation, kitchen and bathroom replacement, windows and doors replacement, legislative compliance works and external environmental improvements. To achieve these key priorities and other necessary works, as outlined within this assessment, a rent increase rise of 6.5% is required. South Lanarkshire Council has the 7th lowest local authority rent in Scotland and the lowest amongst the 21 social landlords who operate within the South Lanarkshire area. Affordability is a key consideration of the council’s approach to rent setting and the council working in partnership with tenants utilise the HouseMark rent affordability tool as part of the annual consultation programme of engagement. It is recognised that the rent increase may affect people who are impacted by socio-economic inequalities across the protected characteristics and the current cost of living crisis, as well as the lasting legacy of the COVID 19 pandemic. Some of the priorities within the investment programme will contribute towards a reduction in fuel costs, helping tenants who are currently experiencing fuel poverty. Other internal and external improvements will help to improve tenants’ homes and general living environment and provide wider community benefits, thus contributing to improving general wellbeing. The availability of welfare benefits will continue to help to mitigate the impact of the rent increase for tenants experiencing financial hardship and the council’s Money Matters Advice Service provides benefits and money advice services to tenants and other customers. The Resource will continue to focus on assisting and supporting tenants to access appropriate benefits and sustain their tenancies through the delivery of a range of services and approaches as detailed at (4) above. As part of the annual review of our budget and business plans which inform proposals for any rent increase, a consultation programme with tenants is undertaken to seek views on setting rent levels. The Budget Scrutiny Group (BSG) and the Tenant Participation Co-ordination Group (TPCG) are the two core tenants’ groups that lead on the development of the programme of engagement in relation to rent setting each year. Tenants are supported by the South Lanarkshire Tenants Development Support Project which encourages, supports and facilitates tenants from across South Lanarkshire to engage and participate to provide views on the council’s budget and rent setting proposals. For the 11th year running, the BSG panel provided tenants with the opportunity to scrutinise how various parts of the housing budget is spent whilst taking into consideration annual budget proposals and key performance indicators. As part of the scrutiny process, the panel met with senior council officers from the council and discussed a range of key topics and questions including the delivery of the new build programme, the ongoing cost of living crisis, fuel poverty, support and advice for tenants/residents living in South Lanarkshire. As in previous years, a full consultation and engagement programme on the rent setting proposals took place during 2023 and this is summarised below: • an on-line survey, available on the council’s website • promotion of consultation and survey through various social media platforms including South Lanarkshire View, Facebook and X • E mail and text messages to over 11,000 tenants • articles on rent setting and encouraging tenants to have their say, published in the Autumn 2023 edition of Housing News (distributed to all council tenants) and published on the council website • a tenant led “Conversation Café” event supported by the South Lanarkshire Tenants Development Support Project, provided an opportunity for open discussion on the proposed rent increase and investment priorities • Local area focus group meetings At the time of writing, feedback through the engagement process indicates positive support for a 6.5% rent increase for three years - 2024/25, 2025/26 and 2026/27, reviewable annually, and support for the Council to maintain its position as one of the most affordable local authority rents in Scotland. |
| Completed date | 19 December 2023 |
| Contact email | equalities@southlanarkshire.gov.uk |
| Area | Council wide |