Plans for 3.75 per cent annual council rent increase to build Aberdeenshire homes
In plans going before Aberdeenshire Council’s social work and housing committee next week, councillors are being asked to back a plan to increase rents on council houses by 3.75 per cent every year until 2019.
The local authority is arguing that this is the only way to fund the construction of further homes and tackle its huge demand for council properties.
It comes as the committee reviews its housing revenue account (HRA) business plan, which is examined every three years.
Some 14,000 people are on the waiting list for a council house. Officers are arguing that the increases would give them £5million to spend on delivering 53 new council houses in the next three years.
Chairwoman of the committee, Anne Allan, told the Press and Journal: “It is very much needed. The 3.75 per cent is actually less than it has been for the last three years. We have to wait and see what the committee think about it. It will be discussed at the full council on February 11.”
Head of infrastructure services at the council, Stephen Archer, said: “Higher rents will allow for more revenue to be made available for capital investment.”