Fife councillors baulk at 8% rent rise proposal
A proposal on the possibility of raising rent for Fife Council tenants by eight per cent has been shelved after objections by councillors.
Members of the local authority’s Cabinet Committee had been asked to agree to a proposal for consultation on rent rises of either six, seven or eight per cent.
The highest rise would see the average weekly rent go up by £7.41 with the average figure for a six per cent hike coming to £5.56.
However a motion by SNP councillor Brian Goodall, who represents Rosyth, that the consultation would only look at five and a half, six and seven per cent increases was unanimously agreed.
Mhairi Mullen, service manager for income, poverty and private housing, had told committee members that an increase of below six per cent would impact services.
“It is recognised the council needs to maximise capacity to borrow HRA (Housing Revenue Account) capital to maintain project of affordable housing programme,” she said. “Model options provided are designed to meet the requirements.
“Tenants will be asked to consider service priorities as well as rent options and this information will inform proposals going to council in February. Any rent increase below six per cent would limit capacity for investment in areas like new builds, property acquisitions, investing in existing stock and increase financial risk so the headroom that the six per cent allows us capacity.
“75 per cent of tenants are receiving support from housing benefit or Universal Credit housing costs and therefore a lower rent increase would not benefit most tenants but would benefit the treasury. We do have a rent support fund available.”
Housing chief John Mills said the proposals were “the right strategy”.
He added: “It is not just Fife you will see other local authorities looking at rent increases.
“We are living in an environment where it used to be £150K to build a council house, now it is £250K. We are dealing with that level of inflation.
“HRA is going into high risk so we are trying to increase the level of investment capacity by increasing rent.”
SNP councillor David Alexander (Leven, Kennoway and Largo) said tenants want to know what their rent is going to be and if they can afford it.
“A bit of honesty for the tenants is what I am asking for. We all want investment but at what cost and what danger?” he said.
Putting forward his motion, Cllr Goodall (Rosyth, SNP) said: “We are still in the middle of a cost of living crisis. It is getting worse for a number of people so for us to be suggesting a rent increase that would be more than double the rate of inflation from September is not on.
“We should take the principle to rule out an eight per cent increase. The other element is that we consider a 5.5 per cent increase which is the lowest level officers have said they will be willing to agree as a competent motion today. think we should have been 4.8 per cent but I have been told we are not allowed to move on that.”