Agreed rent level for 2025/26

A 6% rent increase was agreed, in line with what over 3,000 tenants told us in the recent Rent Level Options consultation. 

The changes will result in an average weekly rent increase of £4.78 per week, bringing the average weekly rent to £84.52. Perth and Kinross will maintain the 4th lowest council rent in Scotland, £7.87 below the projected Scottish local authority average.

The rent increase will enable enhanced service levels for tenants, and address financial pressures faced by the Council's Housing Revenue Account (HRA) - the ring-fenced pot of money paid to the Council through rents which is used exclusively to pay for housing services.

Despite recent challenges such as the recovery from the Covid-19 pandemic, rising energy costs, increased inflation and interest rates and disruption to supplies of labour and materials, the Council is committed to maintaining and improving tenants' homes. 

The rent increase will cover significant cost pressures, including:

• Materials and labour to repairs and maintenance
• Energy costs
• Borrowing costs due to rising interest rates
• Nationally agreed pay increases for our staff.
• Implementation of Scottish Government policies, such as climate change obligations and carrying out electrical checks on all our properties

The HRA is facing total cost pressures of just under £2.8million, which means that the proposed rent increase for 2025/26 will be higher than in some previous years. However, to reduce the financial pressure on our tenants, we will use some of our reserves to minimise the increase. These savings will not have any impact on the current service that is provided to tenants.

From October to December 2024, for the eighth consecutive year tenants had the opportunity to vote on three different rent increase options, based on their priorities for investment.  A total of 3,055 tenants responded to the consultation - the highest ever response rate,  compared to 2,944 last year.

A total of 64% preferred the 6% increase option, which would fund new and increased investment including:

• £20million over 5 years for buy back funding - to buy back around 40 ex-Council properties per year
• £17,000 for the Internet of Things household wi-fi sensors project
• £5,000 for the Housing Repairs out-of-hours service
• £150,000 for digital, financial & social inclusion projects
• £187,000 for increased staffing to meet compliance and service & maintenance
• £62,000 for a new Gypsy Traveller Project Officer
• £60,000 for a new Housing Enabler
• £15,000 for HRA roads & footpaths
• £105,000 for a Property Condition Resource - to undertake data interrogation and analysis to prevent damp, mould and condensation
• £181,000 for planned maintenance

We are of course aware that some tenants may be struggling with the cost of living. A wide range of support measures have been put in place by the Housing Service to support anyone who needs help. 

Every tenant will be sent a letter outlining what their new rent cost will be. The new rent level will come into effect from 7 April 2025.