CVHA Annual Rent Increase 2021/22

Posted on 20th Nov 2020

Clyde Valley Housing Association (CVHA) would like to involve you in our annual Rent Increase process for 2021/22.

We have taken into account the impact of the COVID pandemic on our customers, the economy as a whole and the needs of our financial business plan.

We are therefore proposing an increase of 1% for one year in relation to 2021/22.

Please take this opportunity to tell us your views by:

• Completing our Survey Monkey question at: https://www.surveymonkey.co.uk/r/8GW8H8D

• Sending us an email to cvha@cvha.ork.uk

• Calling one of our team on 01698 268855

• Sending us your views in the post

Legal Requirements

The Housing (Scotland) Act 2001 requires us to consult tenants and take account of their views when making decisions about proposed rent increases.

Section 25 of the 2001 Act allows landlords to increase rent (or any other charge payable) under a Scottish secure tenancy so long as they give tenants at least four weeks’ notice of the increased rent due to be paid. Before they issue this notice landlords must consult tenants affected by the proposal and have regard to their views.

This specific requirement to consult tenants on rent increases is in addition to social landlords’ wider requirement under section 53 of the Housing (Scotland) Act 2001 to have a tenant participation strategy in place and, under section 54, to consult tenants and consider their views on proposed matters – such as housing management, repairs and maintenance – where the proposals, if implemented, are likely to affect tenants significantly.

What has happened in the past in relation to Rent Increases?

As part of a Five Year Rent Strategy a 3% annual increase has been applied each year from 2016.

This approach has allowed CVHA to focus on:

• Setting rents at reasonable levels that would compare favourably with Scottish averages.

• Finance investment programmes to continue to improve our housing stock.

• Continue our commitment to build new houses.

• Meet business and community objectives.

• Deliver best value and meet tenant expectations.

• Cope with the external operating environment.

What will happen with Rent Setting for 2021/22 and beyond?

This year it was our intention to consult with you on a further 5-year, however, given the current Covid pandemic the decision to do this was reviewed and it was considered there should be a one year rent decision for 2021/22.

During 2021/22 we will revisit the need for a five year rent strategy and consider if the environment is right to consult with customers for another longer term rent strategy.

Rent Comparisons

The table below shows the average weekly rents for CVHA compared against the Scottish Average and Local Housing Allowance Rates for both North and South Lanarkshire as at 31 March 2020.

Property Size	CVHA	Scottish Average (excl. Local Authorities)	LHA North	LHA South
2 apartment	£77.84	£78.36	£82.85	£86.30
3 apartment	£86.87	£87.60	£103.56	£109.32
4 apartment	£96.17	£96.69	£113.92	£143.84
5 apartment	£103.99	£109.32	£182.96	£218.63

What would a potential range of 1% to 1.5% increase look like on average rents by property size in 2021/22

Property Size	CVHA Rent 31 March 2021	CVHA Rent 2021/22 (1% Increase)	Weekly Difference (1%)	Annual Difference (1%)	CVHA Rent 2021/22 (1.5% Increase)	Weekly Difference (1.5%)	Annual Difference (1.5%)
2 apartment	£80.18	£80.98	£0.80	£41.60	£81.38	£1.20	£62.54
3 apartment	£89.48	£90.37	£0.89	£46.28	£90.82	£1.34	£69.79
4 apartment	£99.05	£100.04	£0.99	£51.48	£100.54	£1.49	£77.26
5 apartment	£107.11	£108.18	£1.07	£55.64	£108.72	£1.61	£83.55

What will a 1% Rent Increase provide for our Customers?

By taking account of the considerable pressures faced by our Customers this year a 1% Rent Increase will enable CVHA to continue to:

• Set rents at an affordable level that compares well with Scottish averages.

• Invest in and improve our housing stock.

• Continue to build new homes to meet local housing need.

• Improve customer experience through delivery of our new Customer Experience Strategy. This will include the introduction of a new Contact Centre and a new digital portal for customers.

• Deliver best value and meet tenant expectations.

Thank you for participating in this engagement opportunity with Clyde Valley Housing Association.