Moray Council to consult on 3% rent increase

COUNCIL tenants in Moray are to be consulted on a 3 per cent rent rise.

Views on the increase for 2020/21 will be gathered from the authority's 5909 tenants before feedback goes back to councillors as part of February's budget talks.

The proposal, which equates to inflation plus 1 per cent, was considered at a meeting of Moray Council this morning, when a reduction in the number of new council houses being built was also agreed.

That will drop down from 70 to the previous level of 50 per year to ensure “all housing activities remain fundable and affordable”.

A 2016 review of the housing business plan showed 70 new homes could be affordable, based on a 4 per cent rent increase over the following three years.

But rents were frozen last year in response to a survey of tenants which showed some were struggling to heat their homes.

Housing boss Richard Anderson said income from rents had to cover both new builds as well as the maintenance of existing council homes.

Mr Anderson agreed it would represent a shortfall from the 502 completions from 2019-2024 set out in the authority's Strategic Housing Investment Plan, but vowed to reassess the situation on an annual basis.

Councillor Louise Laing (Speyside/Glenlivet) suggested the council also look at bringing empty homes back into use, however caution was sounded that meeting energy efficiency standards in older buildings can be cost prohibitive.

Based on the average weekly rent, the proposed increase for 2020/21 would be £1.80 a week.

A report to the area's 26 local councillors stated: "The level of council house rents in Moray is well below the national average. This must be viewed in the context that Moray remains a low wage economy."

Consultation will run from November 28 to January 10 before feedback is gathered. It will go back before members ahead of the upcoming budget-setting process.

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