News Item

03-02-12

HHP BUDGET & RENT RISE FOR 2012/13 APPROVED

At its meeting on Wednesday 1st February 2012 the Board of the Hebridean Housing Partnership (HHP) approved its budgets and rent rise for 2012/13.

Following consultation with tenants and tenant representatives through the Western Isles Federation of Residents Association (WIFTRA) the Board agreed to set an inflation only rent increase of 5.2% resulting in an average weekly rent of £63.48.

HHP has one of the lowest average rent of any social landlord in Scotland.

George Lonie Chair of HHP’s Board said “The Board recognises the pressure on family budgets in the Western Isles during this economic downturn.  The assumption in our Business Plan had been that rents would increase each year by RPI + 1%.  However following representation by WIFTRA and discussions with tenants we have set an inflation only increase.  We have absorbed some of our rising costs through efficiency savings and have not passed these onto tenants.”

At the same meeting the Board approved a 5 year rent guarantee of RPI + 1% which will act as a voluntary cap on future rent increases and give reassurance to tenants about future rent levels.

The Chair of WIFTRA Kevin Paterson welcomed the rent guarantee.  Mr Paterson said “The Forum has consulted tenants and there has been concern about the 5 year rent guarantee coming to an end following stock transfer.  HHP’s voluntary rent cap gives a guarantee that rent increases will not exceed RPI + 1% in any given year.”

HHP also approved its investment and maintenance plans in tenants’ homes for the next 3 years.  A total of £11m will be spend on window and door replacement, kitchens, bathrooms, improved insulation, heating systems and a further £5m on repairs and planned maintenance.  Over £5m will be spent in 2012/12.  £3.6m will be spent on investment with an emphasis on improving the thermal efficiency of houses to try and help tenants with fuel costs and repairs and maintenance spend will be £1.6m.