Council rents: Fife tenants face 2.5% rise and pay more for lock-ups and garages

Fife Council has approved plans to raise the average weekly rent by £1.91, with the 2.5% hike taking the average weekly rent up to £78.49 for 2022/23.

Charges for other housing-related services, lock-ups, garage sites and temporary accommodation will also go up by the same percentage.

Councillors heard how Fife Council’s average weekly rent is currently between £4.75 to £17.17 lower than average rents charged by the region’s other main registered social landlords, and that options were put to residents via a tenants’ survey.

Rent rises of 2.5%, 3% and 3.5% were mooted, and the majority of respondents to the survey - 62% - were in favour of the 2.5% increase.

Councillor Judy Hamilton, housing convener, said: “It’s the lowest we can afford without reducing services, and we have seriously considered all options.

“Tenants have confirmed that they would prefer this 2.5% increase, and it means the council rent will still be affordable to the 40% of council households not claiming benefits.

“It’s good news for our tenants and good news for the council.”

More than £128 million will be brought in as a result of the rent increase alone, and over three quarters of the council’s housing revenue account budget for 2022/23 will be focused on investment in repairs, maintenance, improvements and funding for new council homes.

A further £2.9 million will be netted from the increase in charges.

Councillors also backed the housing revenue account capital investment plan over the next three years which will see £312.3 million spent on affordable housing programmes, component replacement and wider works.

Over the last year the average cost per affordable home has increased significantly from £175,000 per unit to £200,000 per unit, largely due to the impact COVID-19 has had on construction costs.

As a result, the council intends to borrow £45 million this year to help fund an additional 500 affordable housing units as part of the wider £100 million Transitional Affordable Housing Programme.

Around £5.4 million has been set aside for energy efficiency and fuel poverty projects this year.

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