Falkirk Council: Rents to rise by two per cent for council tenants

This is the recommended rise that councillors will be asked to agree when they meet later this week. They will also hear that increasing rents is the only way Falkirk Council, as landlord, can continue to have a sustainable investment programme to improve its housing stock.

Falkirk Council is currently landlord to approximately 16,250 tenancies. However, of those around 9000 (55 per cent) are in receipt of Housing Benefit or the Housing Element of Universal Credit and this means over half of those tenants who are on the lowest household incomes will be fully protected from any change in their rent.

Back in 2020, the council consulted with tenants after its investment planning identified that there was a need for a six per cent increase in rental income over a three year period. Tenants who responded said their preferred option was for an annual two per cent increase between 2021/22 and 2023/24.

Currently Falkirk Council’s average rent for 2022/23 stands at £73.35 per week and a two per cent increase would be £1.47 giving a new average rent of £74.82.

The report states: ”The delivery of quality and affordable housing directly impacts on each of the council’s three priorities in particular supporting stronger and healthier communities. It also impacts on reducing inequality and supporting a green transition.”

It also reveals that rent arrears “continue to be higher than in previous years”, adding this is a national concern and is consistent with the experience in other local authorities.

To support its tenants and prevent rent arrears, additional housing staff will be used to identify tenants who need assistance to manage their finances as early as possible to prevent them getting into arrears.

The council is also developing a rent arrears support scheme with an initial budget of £250,000. Although it has still to be finalised, based on similar models in other local authorities tenants who maintain ongoing rent payments and contribute payments to arrears would be eligible for a quarterly “matched” payment. This could incentivise tenants to reduce their arrears and the time taken to clear rent accounts could be halved.

Councillors will be asked to approve the recommendations when the full council meets on Thursday.