You may remember that back in August and September 2023, we sent you a survey asking about your preferred rent increase option for 2024-25. We asked you, our tenants, if you preferred a 4%, 4.5% or 5% increase, and provided information on what each option included for planned housing investment. Over the last three years, rent increased by 2% each year, this well below the rate of inflation.
Based on the financial position at the time of the consultation we understood the 4%, 4.5% and 5% to be affordable. However, since the time of the consultation inflation has continued to rise. This means that we need to increase our rent charges by 5% during 2024-25 to maintain our homes to a good standard and to increase our affordable housing supply. Even with this increase, Falkirk Council rents are still amongst the lowest in Scotland. However, to keep rents as low as possible, we will prioritise how rent money is spent.
From our recent Tenant Satisfaction Survey, we learned that tenants want us to improve the quality of their homes. Based on this feedback, we're focusing on upgrades such as replacing windows and doors, and heating systems, which can also help reduce energy costs. To make this happen, we will need to reduce spending in other areas, including fencing, and estate improvements. We will also need to delay some roofing and roughcasting projects that were planned for 2024-25 but we plan to catch up on these during the following year (2025/26).
Those in receipt of Housing Benefit will be protected from the increase. Tenants in receipt of Universal Credit will need to notify the DWP of the increase (and will then be protected). Those on low incomes are encouraged to use the benefit calculator to see if they qualify for additional support. To access the benefit calculator please visit: Where you live (entitledto.co.uk) or scan this QR with your phone.
These changes to the investment program, and the 5% increase in rents, were agreed by Council on 31 January 2024. You can watch the presentation to Councillors at:
Falkirk Council 31 January 2024 (youtube.com)