Background
The Co-operative is planning the budget for the next financial year starting in April 2025, and as a key part of that, we are carrying out our statutory consultation with tenants on what level of rent is set from April 2025.
The Management Committee recognise that these are still challenging financial times for households, with many people struggling due to higher prices for food, energy, and general living costs.
The Management Committee is committed to keeping rents as low as possible and to finding the right balance between affordability and the need to cover the cost of providing services and continuing investment. The majority of our income (approximately 97%) comes from rents.
Do Rents have to Increase?
The costs of providing services, meeting our legal and statutory obligations, and keeping the area safe and tidy have gone up significantly over the last few years.
| The last two years have seen below inflation rent increases of 5% from April 2023 and 2024. The average rent increase for Scottish registered social landlords for the same period was 5.4% and 6.2%. | In October 2022, inflation (CPI) had increased to 11.1% significantly increasing costs. CPI at October 2023 was 4.6% and in October 2024 it reduced to 2.3%. The reduction in inflation does not mean that costs have gone down – they are now rising more slowly. |
The Rent Policy
WWHC’s Rent Policy seeks to balance the provision of housing services with affordable rents. The Co-operative is non-profit making but we need to generate a surplus in order to have funds to pay for major repairs and renewal programmes when required. The Rent Policy is points based with factors attributable to service and amenity elements so that there are rent differentials between different property sizes and types. The Policy and Business Plan are linked to the Consumer Price Index (CPI). We are planning to review the Rent Policy in consultation with tenants during 2025/26 along with a consultation on the services provided and costs. You will be contacted requesting views when this process starts.
How is Income Spent?
The Co-operative’s income needs to cover the cost of:
- Management Costs
- Maintenance Costs
- Voids and Bad Debts
- Development Costs not met by other grant funding
- Loan Repayments
- Future Major Repairs and Renewal Costs
No other Registered Social Landlord in Scotland has such a high proportion (61%) of multi-storey flat stock type and associated costs.
Below is a breakdown of how money is spent across budgets:
| % of budget 2023/24 | % of budget 2024/25 | % of budget 2025/26 | |
| MSF costs including Concierge | 24.8% | 25.0% | 26.2% |
| Planned and reactive maintenance costs | 18.8% | 21.6% | 21.8% |
| Insurances | 3.1% | 4.4% | 4.7% |
| Office staff salary and employers costs | 24.5% | 23.4% | 23.9% |
| Office maintenance and running costs | 4.1% | 4.4% | 4.6% |
| Affiliations, fees and training | 3.0% | 2.9% | 3% |
| Community Support / Wider Action | 2.2% | 1.7% | 1.6% |
| Loan repayments | 19.5% | 16.2% | 14.2% |
Supporting our Tenants and Community
Over the past 2 years, WWHC has worked with the Resource Centre and together have been successful in securing external funding of over £186,000 to help our tenants with issues including food, fuel costs, energy advice, welfare benefits advice and support and warm space provision.
Maintenance Plans – Next 5 Years
- Flat Entrance Doors – MSF and LR Properties
- Kitchens and Bathrooms – condition surveys currently being carried out have identified a number as needing renewed over the next 5 years
- Common area / close and landing improvements – lighting, painting and flooring
- Hard landscaping / car parking improvements
- Boiler upgrades (for properties built 2009)
- External painting works (for properties built 2009)
What has the Management Committee considered so far?
The Committee has carefully considered rent increase options needed by the Business Plan finance projections to fulfil investment plans. Committee took into account the significant cost increases over the last 24 months, with the actual inflation figure for some areas rising significantly above CPI.
During the budget process, the following have impacted on the proposed increase:
- We carried out a joint procurement exercise of maintenance services introducing a framework agreement
- We re-measured and carried out a further procurement exercise for grounds maintenance work including a winter programme
- We put in place a new IT system resulting in efficiency savings
- The 3-year contract which fixed landlord electricity costs ends 31/03/2025. We have carried out a procurement exercise resulting in a 45% cost increase for a new 3-year contract
- We required to have the housing stock revalued for insurance purposes resulting in a 60% increase in insurance costs over 2 years
- Employer National Insurance has increased by 1.2% with a 45% reduction in the earnings threshold.
- The Bank of England Monetary Policy Committee expects CPI to increase to around 2.75% over the next year, falling back to the 2% target after that.
- We continue to benchmark multi storey flat rent levels and services against other landlords with this stock type.
- We procure services jointly with other landlords where possible.
- We put longer-term contracts with fixed costs in place where possible
- We are members of appropriate industry bodies where cost information is shared and collective agreement reached.
- We will continue with close monitoring and explore additional efficiency savings.
Rent Increase Proposal of 4.3% for 2025/26
The Management Committee has a duty to consider the long-term impact of decisions that are made today and need to ensure long-term financial viability.
A 4.3% increase is the lowest that can be proposed without significant reductions in services and future investment plans.
This option aims to:
- Sustain the current levels of services in the short term
- Generate a positive cash flow for the Co-operative in the longer term
- Maintain our planned investment programme to our properties from 2025/26 onwards.
What would this mean for rent levels?
The following table illustrates the impact on average rents*:
| Property Size | Average Weekly Rent 2024/25 | Average Weekly Rent 2025/26 (4.3% uplift) |
| 2 apartment | £89.71 | £93.57 |
| 3 apartment | £106.70 | £111.28 |
| 4 apartment | £119.72 | £124.87 |
| 5 apartment | £128.69 | £134.22 |
*These average rents are calculated using the range of charges for different sizes and types of properties so they will not match the rent you pay.
Tenant Focus Groups
So that we can provide further information and answer any questions, two tenant focus group sessions will be held on Thursday 9th January 2025 where we will be requesting feedback on this rent consultation. Sessions planned as follows:
| Location | Whitlawburn Community Resource Centre |
| Session 1 | 1pm – 2pm |
| Session 2 | 4.30pm – 5.30pm |
We encourage tenants and members to attend to share their views. You can attend any session noted above. Refreshments will be provided.
Consultation Response
For all tenants that we hold mobile numbers or email addresses for, you will have received a specific link to allow you to respond to the consultation online.
Please send us your comments no later than 5pm on Friday 17th January 2025.
You can also respond by any of the following methods:
To complete the survey anonymously, click this link: https://cxfb.co.uk/sc/8C0D2E17/8F082C10
In Writing: Please contact us to request a paper copy and return it to the main office.
By Telephone: 0141 641 8628
By Email: enquiries@wwhc.org.uk
If you require further information, please let us know.
| Rent levels affect all of our members and tenants so it is important that as many tenants as possible respond. We appreciate you taking the time. All responses will be considered by the Management Committee when making a final decision. |
If you are worried about paying your rent, please contact us as soon as possible so we can discuss how we can help.
