Rent arrears increase by £10m in twelve months

Rent arrears increase by £10m in twelve months

Rent arrears for council homes across Scotland have increased by £10 million in a year, according to new figures.

Updated statistics on Housing Revenue Account (HRA) Local Authority Housing Income and Expenditure (2014/15) found that, rent arrears on all properties on councils’ HRAs stood at £50m at 31 March 2014, representing 5.0 per cent of the Standard Rental Income on these properties – an increased of £10m since 31 March 2013.

The report also found that total HRA income (£1.1bn) is forecast to exceed total HRA expenditure (£931m) in 2014-15 (a £170m surplus). There was also a surplus in 2013-14.

Other findings include an estimate of 315,600 council houses in Scotland on 30 September 2014. Average council rent in 2013-14 was £60 per week. Average rent ranged from £47 per week in Moray to £86 in Edinburgh.

Average expenditure on management and maintenance is expected to be £1,883 per house in 2014-15, an increase of £67 per house since 2013-14.

Local authorities budgeted to spend £276m on loan charges (interest, capital repayment and loan fund expenses) in 2014-15. Council housing debt was expected to increase by £273m in the year to March 2014 to reach £3.1bn.

Local authorities’ capital expenditure is projected to total £674m in 2014-15. Of this, £415m (62 per cent) will be spent on improvements to existing dwellings, £224m (34 per cent) on new construction and conversion and £35m (5 per cent) on other capital expenditure.

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