Dear WGHC tenant member,
Rents are our only source of income.
With the new financial year starting on 1st April 2025, Committee along with Senior Staff, now need to set the budgets for the year ahead.
The Committee of Management need to make sure that the Co-op generates enough money to pay for all its services, which include:
- Reactive Maintenance and Emergency Repairs
- Bringing any empty homes up to a lettable standard
- Cyclical programmes including grounds maintenance of common areas
- Other Major Repairs
- Renewal of playground equipment and surfaces
- Tenancy Sustainment and Fuel Assistance
- Community support and wider action activities
- Loans and interest repayments
- Insurances
- Staff salaries, employer costs and training (including the statutory increase in employer national insurance contributions)
- All other operating costs, including the WGHC Office
We are required by law to consult with all our tenants in relation to any changes in rent. To ensure we can meet our loan repayment commitments, statutory safety regimes (gas safety checks, electrical installation condition reports) reactive maintenance programmes and cover all associated increased labour and material costs, we are proposing a rent increase of either 6.75% or 7.50%
Why do rents have to increase?
Inflation / costs of goods and services
Unfortunately, rents need to increase to try and keep pace with external price rises to both goods and services and labour rates of our contractors. Equally, to ensure that WGHC meets all of its statutory and regulatory commitments and our responsibilities under the tenancy agreements to maintain your homes.
Last year, our rent increase approved by a majority of tenant members was 7% – this aligned with our business plan assumptions of CPI @ 5%, plus 2% = 7%
For the coming year, i.e. 2025-26, our assumption was CPI @ 4.5%, plus 2% would equate to a proposed rent increase of 6.5%. However, we are proposing a choice of 2 options.
We have to ‘balance’ our income and expenditure. WGHC will be bearing additional costs that were not previously assumed, specifically, the statutory increase of 1.2% in employer national insurance contributions, announced by the Labour government in the recent budget from 13.8% to 15%.
In addition, the insurance that WGHC have to put in place for all the homes we have (to cover eventualities like fire / flood etc.) is increasing by at least 15% this year. Our landscaping contractor costs have increased by 26% and our stair cleaning contractor have increased their fees by 18%.
We have to ensure our rents are affordable and we are required to benchmark against other Scottish Registered Social Landlords. Year on year, WGHC rents are the 3rd lowest in Edinburgh. We also have some of the only social stock provided with both front and back gardens and private driveways or dedicated, allocated, parking spaces.
To give some context, the following has been declared for next year:
- City of Edinburgh Council are proposing 7% increases for the next 5 years and ‘assumptions’ of 7% increases for the following 5 years
- Falkirk Council over the next 3 years are proposing increases of 9.5%, then 9% and then 7% or 8%
- Angus Council are proposing 5.2%, then 6.7% and then 8.2%
Many social landlords use the September CPI figure by which to increase their rents each year. Many this year who are looking to build new houses are struggling to do so simply because of rising construction costs. Some have had to put a hold on their building developments. Only this week, another development has been scrapped due to severe, over-budget materials and labour spend.
Continuing with Improving Tenant Member Homes
In the last 2 years, WGHC have replaced:
- Boilers and Radiators (including some gas main renewals) in 141 x properties in the Granton Mains area of the estate
- Boilers in 43 x properties in the Forth Quarter area of the estate
- New Kitchens in 42 x properties in the Forth Quarter area of the estate
- New Kitchens in 11 x properties in the West Pilton area of the estate
This represented investment back into WGHC properties of c. £1.3 million. In addition, we ‘average’ a spend of approx. £250,000 per year on reactive maintenance – broken windows, doors, sunken driveways, leaking/broken toilets, leaking/broken taps, replacement lights, broken/damaged fences and gates, playpark damage/graffiti, emergency repairs and much, much, more……..
As our properties age, more works are required to maintain them and our reactive maintenance spend is likely to significantly increase during 2025 / 2026.
Affordability
Year
|
WGHC Rent Increases |
2024 | 7% |
2023 | 6% |
2022 | 4% |
2021 | 0.70% |
2020 | 2% |
2019 | 2.50% |
2018 | 1.70% |
2017 | 1.6% |
2016 | 0% |
2015 | 2.4% |
2014 | 3.2% |
2013 | 2.5% |
2012 | 5% |
2011 | 5% |
2010 | 0% |
Earlier, we have shown that WGHC continues to have on average, the 3rd lowest rent in Edinburgh. Over the past 15 years we have tried to keep annual rent increases to a minimum. These figures are shown in the table above. We have jointly funded the recruitment of an Energy Advisor to help tenants with their fuel bills and we have also applied for various sources of funding to help tenants with their fuel – with virtually all WGHC tenants receiving money to assist with their utility bills.
Committee’s proposals for this year’s rent increases have not been taken lightly. As both a Co-operative and as a social landlord we are a not-for-profit organisation, but we have to ensure WGHC remains financially viable and that we continue to operate successfully and provide ongoing services to tenants.
To help with your decision, the first column in the table below shows each of WGHC’s current rents. Alongside, we have shown rents with a 6.75% and 7.50% rent increase. For those tenants who pay monthly, we have also included the monthly amount.
Please respond by Monday 17th February 2025 by:
- Completing the attached form:
Rent consultation
- Completing and returning the form on page 6 of the letter/flyer sent to you in the Freepost envelope provided and handing your response in to our office/post it back to us.
- Emailing us at mail@westgrantonhc.co.uk.
- Calling in to our office or phoning our office and telling us your response.
- Texting 07827 049883. State in your text either option 1 or 2 along with your house number and postcode.
- Write to us at West Granton Housing Co-op, 26 Granton Mill Crescent, Edinburgh EH4 4UT.
Your response, along with any comments made, will be anonymised, and presented to the Committee for consideration at their meeting on 19th February 2025.