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Have your say
6 December 2021
River Clyde Homes is looking for your views on the proposed rent increases from April 2022. This year, the rent setting consultation period will run from Monday 6 December 2021 until Monday 3 January 2022.
The Association’s Board will consider and approve the level of rent increase for River Clyde Homes customers for 2022/23, taking account of the views expressed in this consultation. We will write to inform you of the new rent charge for 2022/23 at least four weeks in advance of any changes that may occur in April 2022.
This has been another challenging year due to the impact of the Covid-19 pandemic, and you can read about our 2021/22 performance in our published annual report The report shows how every penny of rent money is spent. We feel it is important that you understand the continued impact the pandemic has on our business planning and rent setting process for 2022/23. One of the key challenges for 2022/23 will be to maintain affordable rent levels, continue delivering existing levels of service wherever possible and clear backlogs of work which have accumulated due to the pandemic. We will invest over £1m in building new homes to complete our development programme. We aim to spend £12.5m on improving our existing homes, including planned maintenance works and more than £1m on increasing energy efficiency and reducing fuel poverty.
One of the main considerations when proposing any inflationary increases to rents, is the current rate of the Consumer Price Index (CPI). CPI is commonly used in the housing sector and is the measure used to increase welfare benefits. The CPI rate has increased significantly over the past year with October’s rate being 4.2%. It is predicted that the rate will continue to rise, peaking at around 5% in April 2022.
There are three rent options and we are asking you to indicate your preferred proposal for 2022/23.
|Option 1||Increase rents by 4.0%, which would allow us to maintain our current level of service and planned investment levels.|
|Option 2||Increase rents by 4.5% which would generate an additional £140k and would, for example, allow us to replace a further 9 kitchens, bathrooms and heating systems.|
|Option 3||Increase rents by 5.0% which would generate an additional £280k and would, for example, allow us to replace a further 18 kitchens, bathrooms and heating systems.|
Here’s an example of how a 4.0% increase would affect a typical tenement property:
|Property size||Current weekly rent||Proposed new weekly rent||Weekly increase|
|1 bedroom||£83.44||£86.78||+ £3.34|
|2 bedrooms||£87.06||£90.54||+ £3.48|
|3 bedroom||£90.68||£94.30||+ £3.62|
|4 bedroom||£94.32||£98.09||+ £3.77|
We hope customers will let us know what they think of the proposals by taking part in the consultation. Customers will be contacted to participate in the consultation online. If you prefer, please contact us and we will send out a paper copy for completion. Each response will be entered into a prize draw with one customer having the chance of winning a £200 shopping voucher.
If you live in one of our homes where you receive a service, for example warden and caretaking services, we will contact you to participate in a survey on the individual proposals to increase the cost of the service charges.
This survey may be carried out online or, in the case of sheltered housing, a postcard delivered to you, and we would be grateful if you could complete this.