Housing Revenue Account
North Ayrshire Council · 12 February 2025
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NORTH AYRSHIRE COUNCIL 12 February 2025 North Ayrshire Council Title: Housing Revenue Account (HRA) Capital Investment Programme, Revenue Budget and Rent Levels for 2025/26 Purpose: To advise Council of the proposed HRA capital investment programme and revenue budget for 2025/26 and the consequential rent levels. Recommendation: That the Council agrees to: (i) approve the 10 year HRA capital investment programme, as detailed in Appendix 1; (ii) approve the HRA revenue budget for 2025/26, as detailed in Appendix 2; (iii) approve a rent increase of 3.84% in 2025/26 for council houses, garages/lock ups and temporary accommodation; (iv) approve maintenance of the current rate for gypsy travellers site fees; (v) note the indicative rent increases of 3.84% for the remaining 29 years of the Business Plan; (vi) approve a 5% increase to service charges. 1. Executive Summary 1.1 Section 203 of the Housing (Scotland) Act 1987 includes a requirement for local authorities to maintain a Housing Revenue Account (HRA) to record all income and expenditure related to their direct provision of housing. Councils must estimate, annually, the amounts to be debited or credited to the account, through setting a budget, which is returned to the Scottish Government and published annually. 1.2 In February 2023 Council Officers reported to Council that the HRA was facing affordability challenges due to high inflation and increased borrowing rates. To mitigate the risk to the HRA Business Plan and to keep rent increases below inflation, savings were identified, and a transformation programme was created. Rent increases were set at 6.42% in 2023/2024. 1.3 At the Council meeting on 14 February 2024, a 6.00% rent increase was approved for 2024/2025, which equated to an average increase of £4.97 per week and was implemented in April 2024. Council also noted an indicative rent increase of 3.84% for 2025/2026 and the remaining 29 years. 1.4 An extensive review of the HRA 30-year Business Plan has now been concluded and
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has assessed the factors expected to impact on the HRA budget in 2025/26 and beyond. A summary of the notable changes is highlighted below: General efficiencies across all areas of the housing budget. These savings will not have any impact on the current service that is provided to tenants. Property costs have increased in relation to void and responsive repairs. There has also been an additional provision for timber and dampness works due to increased demand and the aids and adaptions budget has been increased for a two-year period, to assist with waiting lists. In addition to these increases, the HRA has taken responsibility for the community alarm service within our sheltered housing units. Administration costs have increased due to higher insurance premiums. 1.5 These changes have allowed rents to be maintained at the increase indicated to Council in February 2024, whilst maintaining service delivery and continuing to build new social housing to meet demand. 1.6 The review of the HRA Business Plan has resulted in capital and revenue budgets being proposed which will deliver: £64.22m revenue budget which allows us to manage and maintain our houses and our estates. £918.57m investment for improvement works to our existing properties. £185.23m investment to tackle climate change and to contribute towards net zero. £132.78m investment to increase our affordable housing stock by building 623 new homes, refurbishment of three units and purchasing 60 properties from the open market by 2030. £35.61m continued investment in our existing sheltered housing units to create modern accessible housing for older people. £6.02m to allow the continuation of our Estate Based Regeneration Programme. 1.7 To maintain the current service provision, the proposed increase to housing rents is 3.84% (average of £3.37 per week) for 2025/26. The results of the consultation are included within this report. 1.8 Earmarked and non-earmarked reserves have also been reviewed as part of the 2024 business plan process. A summary of the anticipated level of earmarked and unearmarked reserves and any changes made to these is provided at paragraph 2.80. The review of the earmarked funds has resulted in an unearmarked balance of £1.81m. This equates to 2.8% of revenue expenditure. 1.9 The impact of increasing service demand, inflation, borrowing costs and anticipated future asset management requirements presents several financial risks to the HRA 30 Year Business Plan. To ensure a robust and sustainable plan is in place, Housing Services has been progressing with a comprehensive transformation programme, which has been developed to assist with the affordability challenges faced by the HRA and to ensure value for money. The programme is currently being reviewed and revised to ensure that it is fit for purpose in responding to the challenges noted above and will be subject to a separate report to Cabinet later in 2025.
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1.10 Full details of the capital and revenue budgets are contained in Appendix 1 and Appendix 2 respectively. A table with the proposed rent charges for 2025/26 is included in Appendix 3. 2. Background 2.1 Section 203 of the Housing (Scotland) Act 1987 includes a requirement for local authorities to maintain a Housing Revenue Account (HRA) to record all income and expenditure related to their direct provision of housing. Councils must estimate, annually, the amounts to be debited or credited to the account, through setting a budget, which is returned to the Scottish Government and published annually. 2.2 The Scottish Social Housing Charter sets the standards and outcomes that all social landlords should aim to achieve when performing their housing activities. When developing the Business Plan, we must ensure that we take these into account. 2.3 Value for money must be considered when setting tenant’s rents. An annual review of all income and expenditure is undertaken, ensuring a balance is struck between the level of services provided, the cost of the services, and how far current and prospective tenants and service users can afford them. 2.4 At a Council meeting on 14 February 2024, members approved a rent increase of 6.00% for 2025/26 and noted indicative rent increases of 3.84% for the remaining 29 years of the Business Plan. 2.5 The annual review of the HRA Business Plan financial model that was undertaken during 2024 provides assurance of the financial sustainability for the management of the Council's housing stock over a 30-year period. The factors noted within the content of this report were considered as part the review. Capital Investment 2.6 The 10-year capital investment programme has been reviewed and is detailed in Appendix 1. The programme will be funded by a combination of Capital Funded from Current Revenue (CFCR), government grants, prudential borrowing, reserves, and contributions towards the new build programme from the Affordable Housing Account. The planned expenditure in 2025/2026 is £46.00m. Asset Management 2.7 The Housing Assessment Management Plan (HAMP) has informed the review of the 30- year HRA Business Plan. Our asset management requirements are aligned with the financial resources available. The HAMP focuses on the affordability challenges experienced, prioritises the need to meet statutory compliance obligations, and sets the foundations for the future approach to asset management in the context of our evolving sustainability commitments and delivery of the Scottish Government’s Housing to 2040 strategy. A Housing Asset Management Board (HAMB) monitors delivery of HAMP and
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capital investment programmes. Social Housing Net Zero Standard 2.8 The new and emerging Social Housing Net Zero Standard (SHNZS) was consulted on as a replacement for the Energy Efficiency Standard for Social Housing 2 (EESSH2) following a review led by the Scottish Government. The new standard is likely to require increased fabric performance and replacement of ‘polluting’ heating systems with ‘clean’ heating systems in our housing stock. The proposals have significant implications for the housing asset management approach, including cyclical replacement of heating systems and other fabric elements e.g. window, roof and insulation programmes. 2.9 North Ayrshire Council’s response to the SHNZS consultation document was approved by cabinet in February 2024 and noted concerns regarding the potential for a significant funding shortfall should the standard be introduced. The report highlighted that the 30- year HRA Business Plan had a budget provision of £132m for energy efficiency improvements within the existing stock. Existing capital plans included £111m for heating replacement, however, this is mainly based on gas systems. Initial estimates for replacing gas systems with air source heat pumps at the time of the report indicated costs in the region of £370m alone. 2.10 A pathfinder project is in progress to review the financial, technical and customer implications associated with the emerging standard. The project focuses on the traditional housing stock built between 1945 and 1960 which makes up approximately 75% of the stock profile. A sample of properties are being selected from within this group and will be subject to detailed assessment, survey, application of a range of fabric and replacement heating solutions, engagement with tenants, and then post completion monitoring including, the thermal comfort in the property, ease of use of heating controls and utility costs for the tenant. A total of £0.50m was allocated to the pathfinder project in 2024/2025, £0.45m will carry forward into 2025/2026 following challenges in scoping the project due to the ongoing policy uncertainty. Capital Improvement Works 2.11 The capital programme will result in major repairs and improvement works to the housing stock in 2025/26, including: Programme No. of properties 2024/25 projected completions 2025/26 programme Bathroom replacement 184 196 Electrical rewiring 183 300 Heating upgrades 635 624 Insulated rendering 66 15 Kitchen replacement 513 545 Solar PV 526 345 Traditional Rendering 44 77
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Roofing 113 62 Smoke Detection 416 1038 Window replacement 98 68 2.12 The capital programme includes investment to assist the Council to meet the Scottish Housing Quality Standard (SHQS). Strategic Housing Investment Plan (SHIP) 2.13 The Business Plan for 2024/2025 reflected the Council’s SHIP 2024-2029, as approved by Cabinet on 7 November 2023. This ambitious plan included the targeted completion of 1,641 new Council homes, of which 885 were completed by 31 December 2023, the refurbishment of five units and the purchase of 65 homes from the open market. 2.14 The Council was advised of a reduction to the 2024/25 funding Resource Planning Assumption (RPA), and of an expectation that the funding would reduce in future financial years. 2.15 For planning purposes officers have assumed SHIP funding at £11.880m per annum from April 2025 for the SHIP 2025-2030 which was approved by Cabinet on 3 December 2024. 2.16 Due to the funding reductions, existing SHIP projects were prioritised based upon housing need, deliverability, strategic alignment, value for money, and their impact upon community regeneration in order to align with the grant funding envelope currently available. Projects which could not be supported in the main programme, due to the current funding position, were moved to a shadow programme which will be accelerated, subject to Cabinet approval, should slippage occur in the main programme, or if additional funding becomes available. 2.17 The shadow programme includes 135 new build Council units which were assumed as cost neutral when reviewing the Business Plan. Therefore, higher than benchmark grant rates will be required to deliver these schemes without impacting upon the Business Plan. 2.18 The Business Plan reflects the revised SHIP 2025–2030, including provision of £132.78m for the delivery of 623 new build units, the refurbishment of three units and the purchase of 60 homes from the open market, supported by an estimated £55.85m government grant. 2.19 A total of 1,643 new homes are targeted for completion by the Council by 2030, this includes delivery of the Councils shadow programme, of this a total of 909 were completed by 31 December 2024. Full details of the full Council house build programme can be found in the SHIP 2025-2030. 2.20 On 4 December 2024, the Scottish Government announced a draft £767.75m budget for the 2025/26 Affordable Housing Supply Programme. This represents an increase of 38% to the original published 2025/26 budget of £555.86m and is £15.80m higher than the 2023/24 budget. The Council anticipates formal notification of the 2025/26 North Ayrshire Resource Planning Assumption during spring 2025 and delivery of projects will be
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considered accordingly. Estate Based Regeneration Programme (EBRP) 2.21 The Estate Based Regeneration Programme was approved by Cabinet in January 2019 and implemented April 2019. The programme was designed to improve housing estates across North Ayrshire, aiming to address issues such as, areas of low demand, antisocial behaviour, street parking and external appearance. 2.22 The successful delivery of the 10-year EBRP has been impacted by external factors such as the pandemic and the resultant shortage in the supply of materials, labour and an increase in construction costs. Further to this some projects were removed, and delays were experienced due to mixed tenure estates. These delays have resulted in slippage within the programme of £2.67m, all of which has been carried forward into future years to support the delivery of future projects. 2.23 Since the introduction of this programme there has been successful delivery of an additional 622 new parking spaces, the demolition of low demand flatted blocks, landscaping at four sites, a significant fencing programme, and some smaller works up to 31 March 2024. The cost to deliver projects completed up to 31 March 2024 was £3.17m. 2.24 A review of the EBRP has been undertaken, and the programme has been updated for the remaining projects planned for completion between April 2024 and March 2029, revisions to the original plan are noted below: Confidential Regeneration project 9 has been identified as the demolition of 12 low demand properties at Nursery Place, Ardrossan. Six new homes will be built on the vacated site as part of the SHIP. Confidential Regeneration project 14 has now been identified as the demolition of 16 low demand properties at Grange Court, Stevenston. Six new homes will be built on the vacated site as part of the SHIP. The Hazelgrove, Kilwinning project has been removed due to the low number of tenants who would benefit from improvements. Remedial works have been undertaken through the HRA routine repairs budget. Removal of Regeneration project 7, Ardrossan due to financial viability issues. 2.25 Following the review of the EBRP all projects scheduled for 2024/2025 and those proposed for 2025/2026 have had all costs updated. Those within future years will be subject to further design work and indicative costs have been used for budgeting purposes. 2.26 Based on the revised EBRP the total investment cost of £6.02m has been included in the revised business plan, this includes any projected carry forward from 2024/2025. Sheltered Housing Reprovisioning Programme 2.27 The Sheltered Housing Reprovisioning Programme aims to ensure all sheltered housing in North Ayrshire is high-quality, energy efficient, and meets tenant’s needs and aspirations. A budget of £25.00m over five years was approved in 2021/22 to refurbish 11 sheltered housing complexes. The approved budget for 2024/2025 included an
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increase in the budget of £14.84m, taking the total to £39.84m. 2.28 Further delays to the programme have been experienced due to the requirement to identify a suitable and viable heating type for Laigh Court and Vineburgh Court. A heating strategy has now been agreed, and a bivalent system will be used at these units, comprising of communal air source heat pumps with gas boiler backup. 2.29 The most recent refurbishment is Cheviot Court, Irvine which was completed in November 2024 and comprised of 22 individual sheltered housing units. Consultation has taken place for four units planned to start in 2026, these are Laigh Court, Beith, Vineburgh Court, Irvine, Moorburn Park, Largs and Regal Court, Dalry, which are scheduled for completion between early 2027 and summer 2027. 2.30 The full programme is expected to be completed in early 2029, the table below provides further details on the remaining five sheltered housing units. Complex Town Units Estimated Start Estimated Completion Heathfield House Irvine 23 Winter 2026 Spring 2028 Bonnie Lesley Court Stevenston 22 Summer 2027 Spring 2028 Bryce Knox Court Irvine 21 Autumn 2027 Summer 2028 Headrigg Gardens West Kilbride 21 Winter 2027 Winter 2028 George Aitken Court Ardrossan 23 Spring 2028 Early 2029 110 2.31 The business plan has provision of £35.61m to deliver the remaining projects. Redburn Grove, Irvine 2.32 A consultation exercise was undertaken with tenants at Redburn Grove, Irvine in April 2023. Following this consultation future improvement proposals for the site are being developed and costed, reflecting feedback gathered in relation to their preferences for future housing. A business case is being developed which will include all available funding streams and a full options appraisal for the site, including the potential to transfer the site from the General Fund to the HRA. 2.33 This site was considered within the review of the SHIP; however, this was not progressed due to the reduced Resource Planning Assumption. 2.34 In August this year the More Homes Division of the Scottish Government announced a future funding route for gypsy traveller accommodation, which is expected to be introduced from 2026/2027. This will be explored further following its official announcement. 2.35 In recognition of the ongoing review and the current site fees it is recommended that no
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increase be applied to site fees for 2025/26. Revenue Expenditure 2.36 The proposed 2025/26 HRA Revenue Budget is outlined in Appendix 2. Planned expenditure of £64.22m will predominantly be funded by tenants’ rental income and charges for services. 2.37 A full breakdown of the revenue budget can be seen in pie chart below. 2.38 The revenue budget includes funding of £26.09m for property related expenditure in 2025/26 which is 40% of the total revenue budget. This expenditure will assist the Council in maintaining its cyclical and responsive maintenance requirements. The revenue property costs have been increased in 2025/2026 due to a rise in demand for both responsive and void repairs. Further work will be undertaken through the Transformation Programme to understand and review the budget provision. 2.39 The Aids and Adaptation budget has been increased by £0.17m for a two-year period, this will improve service provision by reducing waiting times and clear the Health and Social Care Partnership waiting lists for this work. In 2023/2024 we reported the average time to complete an aids and adaptation as 90.59 days, we would expect with the additional budget provision that this time would reduce significantly over the two-year period. 2.40 The community alarm service within the Sheltered Housing Units will be funded through the HRA and a budget provision of £0.21m has been made available to fund this service. Energy costs 2.41 A review of energy costs within our sheltered housing units and the Gypsy Travellers Site at Redburn grove is currently being undertaken due to a shortfall in the recovery of costs.
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2.42 Sheltered Housing energy costs for individual units should be fully funded by service charges to our tenants or through metered charges collected by our supplier Switch2. Energy costs for the Redburn Site, Irvine are recovered through the sale of electricity cards at Redburn Grove, Irvine. 2.43 Following completion of the review, recommendations will be concluded to secure increased cost recovery in these areas. Rental Income and Stakeholder Engagement 2.44 North Ayrshire Council has a housing stock of 13,398 houses and is expected to generate a rental income of £62.57m. Rent Increase 2.45 To meet the investment requirements of the 30-year Business Plan, including maintaining the Scottish Housing Quality Standard (SHQS) and working towards the impending Scottish Housing Net Zero Standard (SHNZS), delivering the Council house building programme and continuing to deliver customer-focused support services, it is proposed to increase housing rents by 3.84% for 2025/26. The Business Plan indicates anticipated rent increases of 3.84% for the remaining 29 years of the Business Plan. Due to the current financial climate and continued pressure on the HRA this may be subject to change following the 2025 review of the Business Plan. 2.46 North Ayrshire Council average weekly rent was £82.78 compared to the Scottish local authority average rent figure of £84.31 in 2023/2024. The indicative figures for 2024/25 show an average weekly rent for North Ayrshire Council of £87.75 compared to the Scottish local authority average weekly rent of £89.03, as detailed in the table below. Landlord/average Average Rent 2024/25 (indicative) East Ayrshire Council £84.98 North Ayrshire Council £87.75 South Ayrshire Council £84.23 Scottish Average: Local Authorities £89.03 ANCHO £99.11 Cunninghame Housing Association £106.04 Riverside Scotland (formerly Irvine Housing Association) £104.33 Scottish Average: Registered Social Landlords £99.69 Scottish Average: All landlords £92.09 The Scottish Housing Regulator changed the method used to collect the data for average weekly rents in 2020, therefore figures may not match other data sources due to differing methods of data collection. Indicative figures for landlords/averages are calculated by applying their stated average weekly rent increase to their 2024/25 average weekly rent. 2.47 Support with housing costs is available to households with lower incomes through Housing Benefit and Universal Credit. At present, 51% of tenants are in receipt of full
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benefit entitlement for housing costs, 14% are in receipt of partial benefit entitlement and pay some rent and 35% of tenants have no benefit entitlement and pay full rent. Housing staff offer advice and assistance to any tenants who are experiencing financial difficulties. Staff also signpost or refer tenants for other services such as welfare benefits advice, income maximisation, budgeting, debt advice, tenancy support and other support services. 2.48 The Housing (Scotland) Act 2001 requires Councils to consult with tenants and have regard to the views expressed prior to setting rents. 2.49 In preparing the HRA budget for 2025/26, two options for rent increases were identified by officers and presented to Elected Members, the Housing Business Plan Group and the Tenants and Residents Network in November 2024. The options were subsequently included in the tenant consultation exercise that took place between 21 November 2024 and 12 January 2025, namely, to increase rents by 3.84% (an average increase of £3.37 per week) or 4.84% (an average increase of £4.25 per week). 2.50 The lower increase option maintains HRA service provision, and the revised SHIP investment and the higher increase option maintains the HRA service provision, the revised SHIP investment and provides additional funding to support an increase in our council housing stock. Further information on the options considered is included within the Rent Level Options form at Appendix 4. 2.51 A total of 1,473 responses were received - a response rate of 11.5%. This is the highest response to a rent consultation by North Ayrshire Council to date. Responses received from the tenants’ consultation indicated a 77% preference for ‘Option 1’, a rent increase of 3.84% for 2025/26. Tenants were invited to respond by completing an electronic form. A letter was issued to all tenants, emails and SMS messages were sent, posts were added social media channels, adverts were placed in the local press, posters were placed in key locations and tenants were supported to complete the consultation if calling or visiting offices. Housing Services staff also held local drop in events to assist tenants to complete the consultation. 2.52 Through the consultation process tenants had the ability to provide comments on the proposed rent increase options. Common response themes are noted below: • Concerns about applying rent increases in current economic climate • Support for rent increases to support new build and buy backs • General comments about the repairs and maintenance service • Lack of availability of affordable housing • General comments about the conditions of properties and estates Service Charges 2.53 In addition to rent charges, Housing Services apply a service charge to some tenants in sheltered housing units to recover the cost of heating and electricity within their individual homes. It is proposed that these service charges are increased by 5.00% in line with other charges within the general fund.
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Temporary Accommodation 2.54 As at 31 December 2024, 255 dispersed properties and 20 hostel units were in use by the Council as temporary accommodation. It is proposed that the rent charge for these properties be increased in line with council house rents at 3.84%. 2.55 Approximately 3% of homeless people living in temporary accommodation (based on current occupancy) are working and have no entitlement to housing benefit based on their income and the remaining 97% receive either full or partial housing benefit to support them with their rent. 2.56 For those customers receiving no support there is a temporary accommodation grant available to them. This grant will fund the difference between the housing rental charge and the temporary accommodation rental charge. Risk Management 2.57 In developing the HRA Business Plan, the risk landscape was reviewed to determine major/strategic risks and ensure effective mitigation is in place. The Council has an effective system of internal control which is subject to regular review by our internal and external audit functions and regulatory authorities. The following major/strategic risks were considered: Sustainability of the Housing Business Plan 2.58 The economic climate has had a significant impact on the long term sustainability of the Business Plan whilst keeping rents affordable, this includes income maximisation, inflation, increasing energy costs, revised building regulations and risk of reductions to external funding. 2.59 In addition to this the impending Social Housing Net Zero Standard poses a further risk due to increased costs and the uncertainty of any external funding. To minimise the risk to the HRA Business Plan, budget has been set aside annually to allow for some works to be undertaken in advance of the introduction of the standard. 2.60 The Council continues to explore opportunities for operational and management efficiencies and reflect any savings identified in the HRA budget to ensure future years rent level increases are kept as low as possible. A Housing Services Transformation Programme was developed in 2023 and includes several projects that will maximise efficiency, ensure value for money and keep any future rent increases as low as possible. The key transformation projects are noted below. Income Maximisation – Maximise our income through improved rental collection and reduced rent arrears for our current and former tenants. Repairs & maintenance (Repairs Policy) – Assess the increase in repairs demand, review working practices and undertake a full review of the repairs policy including tenant landlord responsibility, whilst maintaining customer satisfaction. Void works, volume and cost – Review works carried out a void stage, assessing tenant/landlord responsibility and scope of work undertaken, whilst ensuring new
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tenant satisfaction is maintained. Aids & Adaptations – Enhanced joint working with the Health and Social Care Partnership to ensure value for money; through, smarter work practices, reduced wastage and improved customer waiting times. The delivery of the transformation programme is supported by £2.00m earmarked reserves. This will allow for investment in areas such as I.T, digitalisation and resourcing to achieve long term efficiencies and service improvement. The programme is currently being reviewed and revised to ensure that it is fit for purpose in responding to the challenges noted above, and will be subject to a separate report to Cabinet later in 2025. 2.61 Benchmarking of rent levels is undertaken annually, alongside national conversations regarding proposed increases. Rent levels are monitored to assure they are in line with the Scottish local authority average. Housing staff offer advice and assistance to any tenants who are experiencing financial difficulties. Housing Services also invest in resources specifically focused on welfare reforms and welfare/benefits and debt advice, to maximise tenants’ income and support households experiencing financial difficulties. National Housing Emergency 2.62 The pressures on the housing system nationally and locally have been well documented. In North Ayrshire, a range of measures are being undertaken across the housing system, including increasing housing supply, managing the demand for homeless people by way of temporary and permanent accommodation and the preparation of a homeless prevention strategy. We are also prioritising bringing our long-term voids back into use and continually reviewing void levels within our temporary accommodation and mainstream housing. The purchase of empty homes is considered a strategic priority when opportunities arise to ‘buyback’, ensuring there is appropriate demand in the area. 2.63 Finally, landlord to landlord sales was introduced to allow us to connect a landlord (that has current sitting tenants) with buyers. Resource Planning Assumption 2.64 The reduction in the Resource Planning Assumption has placed risk on the delivery of the Strategic Housing Investment Plan. Regular communication is in place with the More Homes Division within the Scottish Government to discuss funding, we have also developed a shadow programme that ensures we are able to take advantage of any funding should it become available. Tenant Safety 2.65 The Council has established procedures to ensure compliance with statutory duties and responsibilities in relation to tenant safety. Regular assessment and assurance are undertaken to ensure the necessary training, skills, experience, and knowledge are in place. 2.66 Compliance within the area of tenant safety is a priority for the Council. We continue to see a high volume in the number of tenants who are reluctant to grant access to their homes. This has adversely affected our ability to achieve 100% compliance. During the previous reporting year 2023-2024 we reported 99.79% for gas safety, 100% for smoke detection and 78.71% for electrical safety. Where we cannot secure access for
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compliance, we continue to implement our ‘forced access’ policy. In 2023/2024 we forced access to 631 properties for gas compliance, 209 properties for electrical testing and 169 properties for smoke detection. 2.67 As of 31 December 2024, performance in this area has increased with 99.99% compliance for gas safety, 100% for smoke detection and 96.54% for electrical safety. 2.68 We continue to report to the Scottish Housing Regulator monthly on electrical testing compliance and will continue to prioritise our efforts in this area to aim for 100% compliance. Achieving value for money 2.69 Within the review of the HRA Business Plan, inflation has been estimated using forecasts for the appropriate indices. Alongside this, service delivery costs are benchmarked, and a competitive tendering process is undertaken for fixed term contracts. Income Management 2.70 Income collected, rent arrears and voids are monitored through a performance management framework and are all being considered as part of the Housing Services Transformation Programme. All figures noted in 2.71 and 2.75 have been through external validation and are subject to change. 2.71 The percentage collected of rent due was 99.76% for 2023/24 which was higher than 2022/23 (97.76) and higher than the Scottish average of 99.42% 2020/21 2021/22 2022/23 2023/24 Percentage of total rent due collected in the previous year North Ayrshire Council 97.34% 99.00% 97.76% 99.77% Scottish average 99.06% 99.28% 99.03% 99.42% 2.72 North Ayrshire Council, like other landlords, have been impacted by higher rent arrears in recent years. The percentage gross rent arrears of rent due was for 5.88% for 2023/24 which was lower than 2022/23 (7.14%) and lower than the Scottish average of 6.74% 2020/21 2021/22 2022/23 2023/24 Percentage gross rent arrears of rent due North Ayrshire Council 5.46% 6.63% 7.14% 5.88% Scottish average 6.14% 6.34% 6.86% 6.74% 2.73 The percentage of rent due not collected through homes being empty was 0.40% for 2022/23 which is lower than 2022/23 (0.56%) and lower than the Scottish average of 1.39%. 2020/21 2021/22 2022/23 2023/24 North Ayrshire Council 0.47% 0.53% 0.56% 0.40%
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Percentage of rent due not collected through homes being empty in the last year Scottish average 1.37% 1.42% 1.40% 1.39% 2.74 In March 2024, there were 3,866 tenants in receipt of Universal Credit, of which 2,725 (70.49%) of these tenants had rent arrears averaging £572. 2.75 There were 6,722 rent accounts in arrears as of 31 March 2024, 2725 (40.54%) of these were in receipt of Universal Credit and the remaining 3,997 (59.46%) were not in receipt of universal credit and had an average arrear of £763. Data Accuracy 2.76 Robust processes are in place to ensure data accuracy and there is a dedicated Housing Innovation and Digital Improvement Team that provides system expertise to the Service. A review of the Housing Performance Management System has been undertaken and is continually under review and external validation was procured around the submission of our Annual Return on the Charter. The Council’s internal and external auditing arrangements are also utilised to review data accuracy. This ensures decisions are based on good quality data. Treasury Management 2.77 The Council has a clear strategy reflecting risk management and the wider operating environment. Section 2.79 details the financing costs, which are considered prudent and affordable within the 30-year HRA Business Plan. Fraud 2.78 There are effective risk management arrangements and procedures in place to minimise the risks of any attempts at fraud from being successful. The Council also takes part in the National Fraud Initiative to prevent and detect fraud. Treasury Management 2.79 The Prudential Code for Capital Finance in Local Authorities requires Councils to demonstrate that capital investment programmes and the level required to be funded by borrowing are affordable, prudent, and sustainable. The Key Performance Indicator which demonstrates this is the ratio of financing costs to the net revenue stream. For 2023/24 the Council’s ratio was 18.9% compared to the Scottish average of 21.4%. The estimated indicators for the next 3 years are shown below. The rising ratio is indicative of the significant capital investment programme as outlined in the Strategic Housing Investment Plan and work to maintain SHQS and achieve the Scottish Housing Net Zero Standard (SHNZS). The financing costs are considered prudent and affordable within the 30-year HRA Business Plan. 2024/25 2025/26 2026/27 Estimate Estimate Estimate % % % HRA 24.0% 28.7% 30.5% Proportion of financing costs to net revenue stream
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Revenue and Capital Balances 2.80 The HRA revenue budgetary control report to 30 November 2024 submitted to the Cabinet meeting of 21 January 2025 advised Members of a projected HRA balance of £19.963m at 31 March 2024. These were reviewed and reallocated as part of the 2024 review of the business plan. An increased unearmarked balance of £1.81m is included, which equates to 2.8% of revenue expenditure. This is within the recommended range of 2-4% and provides a greater degree of security to meet any unforeseen short term cost pressures while the transformation programme continues to progress. An analysis of the HRA balances is shown in the table below. Balance at 31 March 2024 Funding of Capital Projects use of Earmarked Funds Re- Allocation Projected Balance at 31 March 2025 £m £m £m £m £m HRA Not Earmarked 1.553 - - 0.253 1.806 HRA Earmarked Council House Building Fund 11.590 - - - 11.590 Transformation Programme 2.000 - (0.059) - 1.941 Sustainability Fund 5.000 (0.554) - - 4.456 Tenant led budget 0.300 - - (0.130) - Software Licenses 0.123 - - (0.123) - Total Earmarked Fund 19.013 (0.554) (0.059) - 18.410 Total HRA Balance 20.566 (0.554) (0.059) - 19.963 3. Proposals 3.1 That the Council agrees to: (i) approve the 10 year HRA capital investment programme , as detailed in Appendix 1; (ii) approve the HRA revenue budget for 2025/26, as detailed in Appendix 2; (iii) approve a rent increase of 3.84% in 2025/26 for council houses, garages / lock ups and temporary accommodation; (iv) approve maintenance of the current rate for gypsy travellers site fees; (v) note the indicative rent increases of 3.84% for the remaining 29 years of the Business Plan; (vi) approve a 5% increase to service charges. 4. Implications/Socio-economic Duty: Financial 4.1 The proposed rent increase of 3.84% in 2025/26 will result in significant resources to invest in the Council's housing stock, with total planned revenue expenditure of £64.22m. This includes CFCR of £8.35m to support a capital programme totalling £46.00m in 2025/2026.
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Human Resources 4.2 None Legal 4.3 The Council has consulted with tenants on the proposed rent increases in line with the legal requirement to do so. Equality/Socio-economic 4.4 The investment proposals outlined in the report will ensure the housing stock continues to support the needs of our tenants, including those with accessibility issues due to age or disability. 4.5 The investment in our properties to provide safer, warmer, and more fuel-efficient homes will support improvements in the health and wellbeing of all our tenants, including young people and families. Climate Change and Carbon 4.6 The budget proposals include substantial investment which will directly support the delivery of the Council's Environmental Sustainability and Climate Change strategy. Key Priorities 4.7 Delivery of the HRA Business Plan supports the Council Plan strategic priorities: ‘Wellbeing’; ‘Climate Change’; ‘A Sustainable Council’: and ‘Communities and Local Democracy’. It supports the ambitions of the Council’s Regeneration Delivery Plan to drive forward development on strategic regeneration sites, including town centres. There is also evidence that children and young people can benefit from improved cognitive development and a reduction in behavioural issues through living in a more attractive, warmer, and better ventilated environment and the provision of new affordable housing also supports the Council Plan priority that children and young people experience the best start in life. New housing will also support our island communities and their economies. Wellbeing £918.57m Improvements to existing homes. £35.61m towards our Sheltered Housing Reprovisioning Programme and £6.02m towards our Estate Based Regeneration Projects. £137.35m to build 623 units, refurbish 3 units and buy back 60 units by the end of the Strategic Housing Investment Plan 2025-2030 [excluding shadow programme] Maximising access to and uptake of benefits, entitlements and financial advice. Communities and Local Democracy New community-based housing service delivery model. ‘No Wrong Door’ approach. Tenant and resident engagement
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Climate Change £185.23m investment to tackle climate change and achieve a net-zero housing stock - over the next 30 years. Solar panels installed on new homes and retrofitting to existing homes. New homes with sustainability features including air source heat pumps, electric vehicle charging points, solar panels etc. A Sustainable Council Robust business planning processes ensuring affordable, prudent and statable management of the Housing Revenue Account. Housing transformation projects focussing on maximising efficiencies and value for money for our tenants. Maximising value from the use of our assets and focusing our investment on priorities. Community Wealth Building 4.8 Through delivery of the SHIP, contractors are required to participate in the Council’s Community Benefits Programme. Development projects aim to deliver new employment opportunities for the area, including jobs and apprenticeships. 5. Consultation 5.1 Housing Services engaged in a programme of consultation with key stakeholders to gather their views of the current service provision and priorities for future service delivery. This engagement was facilitated, in the main, through the Housing Business Plan Group, Tenants and Residents Network and consultation with all tenants. 5.2 A total of 1,473 responses were received - a response rate of 11.5%. This is the highest response to a rent consultation by North Ayrshire Council to date. Responses received from the tenants’ consultation indicated an 77% preference for ‘Option 1’, a rent increase of 3.84% for 2025/26. Tenants were invited to respond by completing an electronic form. A letter was issued to all tenants, emails and SMS messages were sent, posts were added social media channels, adverts were placed in the local press, posters were placed in key locations and tenants were supported to complete the consultation if calling or visiting offices. Housing Services staff also held local drop in events to assist tenants to complete the consultation. DAVID W.HAMMOND Executive Director (Communities and Housing) For further information please contact Leigh-Ann Mitchell, Senior Manager (Governance), on 01294 324907. Background Papers Report to North Ayrshire Council on 14 February 2024 Report to Cabinet on 3 December 2024
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DRAFT HRA CAPITAL PLAN 2025/26 TO 2034/35 Appendix 1 Project Description Total Project Budget Prior Year Spend 2024/25 Projected Spend 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 2033/34 2034/35 10 Year Programme Total £ £ £ £ £ £ EXPENDITURE Council House Building Acquisition Houses-Open Market 1,584,350 1,350,615 1,391,130 0 0 0 0 0 0 0 4,326,095 Bourtreehill Village, Irvine (Redev 7) 9,924,743 187,068 160,000 60,000 390,268 5,089,969 4,037,438 0 0 0 0 0 0 9,577,675 James MacFarlane, Ardrossan (Redev 8a) 4,784,118 834,731 3,060,037 889,350 0 0 0 0 0 0 0 0 0 889,350 Garnock Academy, Kilbirnie (Redev 9) 12,092,889 684,712 8,092,922 3,315,255 0 0 0 0 0 0 0 0 0 3,315,255 Ayrshire Central, Irvine (Redev 12) 49,672,687 3,187,752 4,973,026 18,476,524 14,188,385 8,847,000 0 0 0 0 0 0 0 41,511,909 Montgomerie Park, Irvine 49,532,084 5,060,103 2,765,315 614,981 13,550,000 14,842,200 11,719,685 979,800 0 0 0 0 0 41,706,666 Stanecastle, Irvine (Redev 11a) 7,768,147 1,104,182 5,813,638 850,327 0 0 0 0 0 0 0 0 0 850,327 Fullarton Street, Irvine 12,952,671 33,330 50,000 50,000 3,620,325 6,026,801 3,172,215 0 0 0 0 0 0 12,869,341 Nursery Place, Ardrossan (Regen 1e) 1,758,068 0 58 0 1,100,000 658,010 0 0 0 0 0 0 0 1,758,010 Grange Court, Stevenston 1,506,915 0 0 49,915 1,000,000 457,000 0 0 0 0 0 0 0 1,506,915 Laburnum Ave, Beith /Newhouse Drive, Kilbirnie 3,274,504 1,241,712 1,711,735 321,057 0 0 0 0 0 0 0 0 0 321,057 King's Arms, Irvine (Regen 1c) 2,904,416 334,141 1,574,603 995,672 0 0 0 0 0 0 0 0 0 995,672 St Mary's, Largs 6,581,623 2,472,509 4,109,114 0 0 0 0 0 0 0 0 0 0 0 Nelson Street Regeneration 631,590 4,302 36,315 520,973 70,000 0 0 0 0 0 0 0 0 590,973 Internal Management Charges 1,489,046 1,671,242 1,721,379 1,348,605 1,375,577 1,403,089 1,431,151 1,459,773 1,488,969 1,518,748 14,907,579 Contingency and Fees 14,343,008 0 1,786,087 3,186,799 3,448,575 3,552,547 2,369,000 0 0 0 0 0 0 12,556,921 SUB TOTAL - COUNCIL HOUSE BUILDING 177,727,463 15,144,540 34,132,850 32,404,249 40,389,410 42,586,036 22,646,943 2,355,377 1,403,089 1,431,151 1,459,773 1,488,969 1,518,748 147,683,745 Improvements to existing stock Bathroom Programme Wet Room - Void 358,932 370,417 381,530 392,976 404,765 416,908 429,415 442,298 455,567 469,234 4,122,042 Bathrooms - Void 454,905 469,464 483,546 498,052 512,995 528,384 544,236 560,563 577,379 594,701 5,224,225 Wet Room - Planned 119,644 123,472 127,177 130,992 192,745 456,614 470,312 484,421 498,954 592,128 3,196,459 Bathrooms - Planned 168,315 129,621 178,912 184,280 220,588 1,252,271 1,289,839 1,328,534 1,368,390 1,439,177 7,559,927 Secondary Bathrooms Planned 8,542 8,815 9,080 9,352 22,476 33,072 34,064 35,086 36,139 55,834 252,460 Electrical Rewiring 876,374 730,539 918,387 945,939 980,834 1,141,157 1,175,391 1,210,653 1,246,973 1,288,159 10,514,406 Heating 1,734,209 1,892,603 1,843,395 1,898,697 2,038,591 3,364,138 3,465,062 3,569,014 3,676,084 3,844,976 27,326,769 Kitchens 1,749,225 1,805,199 1,859,356 1,915,136 1,984,025 3,468,728 3,572,790 3,679,974 3,790,374 3,923,970 27,748,777 Kitchens - Void 1,014,043 1,046,493 1,077,887 1,110,224 1,143,531 1,177,837 1,213,172 1,249,567 1,287,054 1,325,665 11,645,473 Roofing 636,619 486,626 676,700 697,001 960,421 770,051 793,153 816,947 841,455 995,990 7,674,963 Traditional rendering 1,171,171 1,017,533 1,048,059 1,079,501 1,472,481 1,320,071 1,359,673 1,400,463 1,442,477 1,851,693 13,163,122 EWI 280,962 189,953 198,651 207,611 290,064 248,101 258,544 269,300 280,379 424,983 2,648,548 Window Replacement 431,655 445,468 458,832 472,597 504,178 2,621,788 2,700,442 2,781,455 2,864,899 2,957,572 16,238,886 Smoke Detector Programme 566,673 674,800 602,351 620,422 639,650 1,019,647 1,050,237 1,081,744 1,114,196 1,148,336 8,518,056 Energy Efficiency 1,073,280 2,522,370 1,140,854 1,175,079 1,210,332 1,246,642 1,284,041 1,322,562 1,362,239 1,403,106 13,740,505 Path Finder Project 450,000 0 0 0 0 0 0 0 0 0 450,000 Solar Panels 2,251,953 2,918,744 2,393,736 2,465,548 2,546,875 2,304,849 2,373,994 2,445,214 2,518,570 2,602,661 24,822,144 HRA Slippage (2,542,263) (78,796) (78,632) (80,991) 2,780,681 0 0 0 0 0 0 SUB TOTAL - IMPROVEMENTS TO EXISTING STOCK 10,804,239 14,753,321 13,319,821 13,722,416 17,905,232 21,370,258 22,014,365 22,677,795 23,361,129 24,918,185 184,846,762 Other Capital works Estate Based Regeneration 1,784,979 1,461,773 1,700,018 1,068,500 0 0 0 0 0 0 6,015,270 Lift Replacement 468,780 0 0 0 0 0 0 0 0 0 468,780 Sheltered Housing Units 540,642 15,264,238 13,043,873 4,599,824 3,326,690 78,132 0 0 0 0 36,853,400 SUB TOTAL - OTHER CAPITAL WORKS 2,794,401 16,726,011 14,743,891 5,668,324 3,326,690 78,132 0 0 0 0 43,337,450 TOTAL EXPENDITURE 46,002,890 71,868,742 70,649,748 42,037,683 23,587,300 22,851,479 23,445,516 24,137,568 24,850,098 26,436,933 375,867,957 Income Affordable Housing Contribution (721,008) (1,193,094) (1,476,810) (221,056) 0 0 0 0 0 0 (3,611,968) CFCR (8,348,729) (6,299,098) (7,348,409) (8,468,899) (5,192,738) (11,098,056) (12,912,732) (13,464,394) (15,615,499) (16,911,358) (105,659,913) Capital Grants (10,104,000) (9,228,000) (9,543,954) (11,845,000) (15,125,514) 0 0 0 0 0 (55,846,468) Prudential Borrowing (26,107,533) (53,550,322) (50,190,939) (20,951,438) (2,680,681) (4,945,807) (10,532,784) (10,673,174) (9,234,599) (9,525,575) (198,392,852) Use of Reserves (721,620) (1,598,228) (2,089,637) (551,290) (588,366) (6,807,616) 0 0 0 0 (12,356,757) TOTAL INCOME (46,002,890) (71,868,742) (70,649,748) (42,037,683) (23,587,300) (22,851,479) (23,445,516) (24,137,568) (24,850,098) (26,436,933) (375,867,957) Total Project Expenditure 0 0 0 46,002,890 71,868,742 70,649,748 42,037,683 23,587,300 22,851,479 23,445,516 24,137,568 24,850,098 26,436,933 375,867,957 Total Project Income 0 0 0 (46,002,890) (71,868,742) (70,649,748) (42,037,683) (23,587,300) (22,851,479) (23,445,516) (24,137,568) (24,850,098) (26,436,933) (375,867,957) Total Net Expenditure 0 0 0 0 0 0 0 (0) 0 0 0 0 0 0
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DRAFT HRA REVENUE BUDGET 2025/26 Appendix 2 Cost Type 2025/26 (£'000s) Income Council houses (62,569) Other rents (541) Recharges (846) Other Income: (264) Gross Income (64,220) Expenditure Employee Costs 5,446 Property Costs: Responsive repairs 8,055 Void expenditure 4,656 Planned & cyclical maintenance 5,725 Aids & adaptations 1,792 Other property costs 5,864 Supplies and Services 494 Transport Costs 16 Administration Costs 2,064 Third Party Payments 3,832 Transfer Payments 177 Other Expenditure 550 Capital Financing Costs 25,549 Gross Expenditure 64,220 Draft HRA Revenue Budget 2025/26
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PROPOSED 2025/26 WEEKLY CHARGES Appendix 3 Element/ Attribute Code Description 2024/25 weekly (excl vat) % uplift applied 2025/26 weekly (excl vat)2 VAT (%) RENT0F Rent for 0 bed flat 68.05 3.84% 70.66 0% RENT0H Rent for 0 bed house 68.05 3.84% 70.66 0% RENT1F Rent for 1 bed flat 85.99 3.84% 89.29 0% RENT1H Rent for 1 bed house 86.49 3.84% 89.81 0% RENT2F Rent for 2 bed flat 87.30 3.84% 90.65 0% RENT2H Rent for 2 bed house 87.84 3.84% 91.21 0% RENT3F Rent for 3 bed flat 88.61 3.84% 92.01 0% RENT3H Rent for 3 bed house 89.08 3.84% 92.50 0% RENT4F Rent for 4 bed flat 89.82 3.84% 93.27 0% RENT4H Rent for 4 bed house 90.32 3.84% 93.79 0% RENT5H Rent for 5 bed house 91.66 3.84% 95.18 0% RENT6H Rent for 6 bed house 92.91 3.84% 96.48 0% HEAT / H9 Heating Charge (H9) 14.67 5.00% 15.40 0% SHEL / S1 Amenity Charge (S1) 10.58 5.00% 11.11 0% SHEL / S2 Amenity Charge (S2) 11.21 5.00% 11.77 0% SHEL / S3 Amenity Charge (S3) 12.30 5.00% 12.92 0% SHEL / S4 Amenity Charge (S4) 13.01 5.00% 13.66 0% SHEL / S7 Amenity Charge (S7) 15.67 5.00% 16.45 0% SHEL / S8 Amenity Charge (S8) 16.28 5.00% 17.09 0% SHEL / WARD Amenity Charge (Ward) 32.31 5.00% 33.93 0% GARGCOUN Garage Site Council 3.53 3.84% 3.67 0% GARGVAT Garage Site With Vat 3.53 3.84% 3.67 20% LUPRENT Lockup Council 6.99 3.84% 7.26 0% LUPRENTVAT Lockup With Vat 6.99 3.84% 7.26 20%
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RENT CONSULTATION 2025/26 – FORM APPENDIX 4 Rent Level Options for 2025/2026 The survey will take approximately 4 minutes to complete. Introduction We consult annually with tenants on our proposals relating to rent setting, so this is your opportunity to have a say in how much rent you pay. We remain committed to keeping your rent as aƯordable as possible, whilst continuing to deliver on your priorities as a tenant, ours as your landlord and ensuring high levels of tenant satisfaction. Our rent levels are currently amongst the lowest in Scotland and remain the most aƯordable housing option for residents in North Ayrshire. Our average rent is lower than the average rent of Scottish Local Authorities and Scottish Social landlords. Here is a comparison of average rents in North Ayrshire by landlord in March 2024: North Ayrshire Council - £82.78 Scottish Average: Local Authorities - £84.31 ANCHO - £93.77 Cunninghame Housing Association - £101.38 Riverside Scotland - £97.78 Scottish Average: Registered Social Landlords: £99.71 Scottish Average: All landlords: £91.81 This year’s rent setting consultation period will run from 21 November 2024 to 12 January 2025. We will use your feedback to prepare a report for a meeting of the Council on 12 February 2025, when elected members will consider the proposed rent increase for Council tenants for 2025/26. We will write to inform you what your new rent charge will be at least four weeks in advance of any changes being implemented in April 2025. If you're experiencing financial diƯiculties there is a cost of living support section on the North Ayrshire Council website that you may find useful (https://www.north-ayrshire.gov.uk/cost-of-living). All information provided will be processed in line with our published Privacy Policy Statement for more information, please refer to our website (https://www.north-ayrshire.gov.uk/privacy-policy). Next
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Challenges facing our Housing Revenue Account (HRA) We are fully committed to keeping rent increases as low and aƯordable as possible for our tenants. However, our Housing Revenue Account (HRA), the ring-fenced fund which uses the rent you pay to provide all of your housing services has experienced some significant challenges, such as; costs for maintaining and improving our houses due to higher prices for contractors and materials borrowing costs to fund future capital projects rising inflation aƯecting other running costs increasing requirements on quality of homes increased demand for support from tenants who are facing genuine financial hardship These pressures have been reflected in our 30-year business plan and the proposed rent options for next year. Back Next Ensuring value for money for our tenants We realise these are financially challenging times for our tenants. We have carried out a comprehensive budget review of the HRA and implemented a number of sustainable eƯiciencies, with further transformation work to be undertaken over the next year. All these measures will help to keep the rent increase for 2025/26 and future years as low as possible, minimising the financial impact on our tenants while protecting investment in maintenance, energy eƯiciency, refurbishment and new build council housing. Back Next
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Investment and Improvement Two rent increase options have been developed for your consideration. Both options include investment in priority areas such as: Continuing to increase our council housing stock through our house building programme, and buying back properties from the open market with a planned future spend of £133m Continued improvements to our existing homes with planned future spend of £963m. Funding of £189m over the next 30 years to tackle climate change and achieve a net-zero housing stock and supporting our tenants with new energy eƯicient technologies Continued investment in our Sheltered Housing Reprovisioning Programme with planned future spend of £36.23m. Delivery of our £10m Estate Based Regeneration Programme In 2025/26 we plan to complete the following planned capital improvements: 1,038 smoke detectors 627 heating systems/boilers 545 kitchens 413 solar PV installations 196 bathrooms 187 electrical rewires 101 roofs/re-rendering 68 windows 58 wall re-renders 15 external wall insulations Back Next What are the rent level options for 2025/26? The two proposed options are set out below, along with information on what each option will allow us to do. Option 1 Increase rents by 3.84%, an average increase of £3.37 per week This maintains the current levels of investment in homes, in new build homes and our current service levels Option 2 Increase rents by 4.84%, an average increase of £4.25 per week This maintains the current levels of investment in homes, in new build homes and our current service levels and allows additional funding to support an increase in our council housing stock. The indicative average rent increase for each of the remaining 29 years of our 30-year plan is currently 3.84%. Back Next
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AƯordability and weekly rent charges It is important that we recognise the impact of rents and proposed rent increases on tenants' household income. We have to consider aƯordability to tenants alongside our obligations as a landlord to maintain the quality of your home. The weekly rent charge for 2025/26 for each proposed option, based on property size, would be: Option 1 - Increase rents by 3.84%, an average increase of £3.37 per week Bedsit flat: £70.66 Bedsit house: £70.66 1-bedroom flat: £89.29 1-bedroom house: £89.81 2-bedroom flat: £90.65 2-bedroom house: £91.21 3-bedroom flat: £92.01 3-bedroom house: £92.50 4-bedroom flat: £93.27 4-bedroom house: £93.79 5-bedroom house: £95.18 6-bedroom house: £96.48 Option 2 - Increase rents by 4.84%, an average increase of £4.25 per week Bedsit flat: £71.34 Bedsit house: £71.34 1-bedroom flat: £90.15 1-bedroom house: £90.68 2-bedroom flat: £91.53 2-bedroom house: £92.09 3-bedroom flat: £92.90 3-bedroom house: £93.39 4-bedroom flat: £94.17 4-bedroom house: £94.69 5-bedroom house: £96.10 6-bedroom house: £97.41 It’s important that we continue to consider the impact of any increase on our average rent levels and how aƯordable these are for current and future tenants. Back Next
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Vote for your preferred rent increase option Please choose your preferred option below: Option1 Increase rents by 3.84%, an average increase of £3.37 per week This maintains the current levels of investment in homes, in new build homes and our current service levels. Option 2 Increase rents by 4.84%, an average increase of £4.25 per week This maintains the current levels of investment in homes, in new build homes and our current service levels and allows additional funding to support an increase in our council housing stock The indicative average rent increase for each of the remaining 29 years of our 30-year plan is currently 3.84%. 1. What is your preferred rent increase for 2025/26? o Option 1 – Increase rents by 3.84%, an average increase of £3.37 per week o Option 2 - Increase rents by 4.84%, an average increase of £4.25 per week 2. Do you receive financial support for your housing costs, such as Housing Benefit, Universal Credit or Discretionary Housing Payments? o I don’t receive any support and pay all my rent myself o I receive some support and pay part of my rent myself o I receive full support and don’t pay rent 3. Please provide any comments that you may have in the box below Enter your answer Back Next
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Enter the prize draw or request housing support Each tenant who takes part in this consultation has the option to enter a prize draw to win one of two £50 high street shopping vouchers. You can also tell us if you would like any extra support to help pay your rent or feel like you could benefit from some extra help with your tenancy. 4. Please tick the boxes that apply to you. o I would like some information on support available to help pay my rent o I would like some extra support to help keep my tenancy o I would like some information on the scheme that provides house contents insurance for tenants o I would like to join the Tenants' Panel o I would like to be entered into the prize draw for a £50 shopping voucher Back Next Please provide your contact details Please leave your details below so that we can contact you if we need to. 5. I confirm that I am a North Ayrshire Council tenant o Yes o No 6. Name Enter your answer 7. Address Enter your answer 8. Postcode Enter your answer 9. Telephone number Enter your answer 10. Email address (optional) Enter your answer 11. Did you receive support from a Council staƯ member to complete this survey? o Yes o No Back Next
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If Yes to Q11, go to Q12 if No to Q11, go to almost done 12. Please provide the staƯ member’s name Enter your answer 13. Please select the staƯ member's team o Dalry Housing OƯice o Irvine Housing OƯice o Kilbirnie Housing OƯice o Kilwinning Housing OƯice o Largs Housing OƯice o Three Towns Housing OƯice o Common Housing Register Team o Customer Call Centre o Housing Support o Refugee Support Team o Strategy & Development o TP Team o Welfare Reform Team Back Next Almost done… You are about to submit your response. By clicking 'Submit' you give us permission to analyse and include your response in our results. After you click Submit, you will no longer be able to go back and change any of your answers. Back Submit
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RENT CONSULTATION 2025/26 - RESULTS APPENDIX 4 Total number of responses: 1,473 Letters issued November 2024: 12,757 Percentage of tenant responses: 11.5% Option1 Increase rents by 3.84%, an average increase of £3.37 per week This maintains the current levels of investment in homes, in new build homes and our current service levels. Actual responses: 1,137 Percentage of responses: 77.2% Option 2 Increase rents by 4.84%, an average increase of £4.25 per week This maintains the current levels of investment in homes, in new build homes and our current service levels and allows additional funding to support an increase in our council housing stock Actual responses: 336 Percentage of responses: 22.8%