ARGYLL Community Housing Association’s chief executive has claimed that it set one of the lowest rent increases compared to others in Scotland this year.
A councillor asked what factors were taken into consideration by the housing association (ACHA) when it set its rent rises for each financial year.
Michelle Mundie said that increases were due to the cost of materials for repairs rising “substantially”, but that the association’s increase was lower than others in Scotland.
The discussion took place at a meeting of Argyll and Bute Council’s Mid Argyll, Kintyre and the Islands area committee on Wednesday, June 3.
Councillor Tommy MacPherson (Independent, South Kintyre) asked: “There was some concern about the rate of rent increases over the last few years.
“While I have been able to do some background research, it seems ACHA is working with national inflation, while council tax is several per cent above inflation.
“Wages in our rural communities are not keeping pace, and as we all appreciate, some costs of living are higher than the national average.
“What consideration has ACHA made when reviewing rent increases? I have only been able to access my own data, but last year it went up 4.5 per cent.
“How does ACHA assess how it is moving forward when residents no longer consider their tenancy to be social and affordable?”
Ms Mundie responded: “The rate increase we apply is agreed by the board after much consideration. I am sure you appreciate the cost of materials for repairs has risen substantially and price inflation is sitting above what would be regarded as normal.
“We take that into consideration and we take inflation into consideration. We look at annual variation and take that into consideration.
“We also carry out benchmarking with other associations, and ACHA was one of the lowest rent increases compared with others in Scotland.
“We are very conscious that the cost of living continues to bite and we are trying to keep rates as low as we possibly can.
“There are lots of really difficult discussions had about rent increases, because nobody wants to increase it.”
