2024/25 Council Housing Rent Consultation

Every year the City of Edinburgh Council’s housing rent consultation gathers tenant views on their experience of the housing service and presents options for setting the next year’s rent levels.

This year tenants were presented with three rent increase options: 4.1%, 5.0% and 8.4%.  The consultation explained the impact the different options would have on delivery of key commitments, including meeting Energy Efficiency Standard for Social Housing 2 (EESSH2) and our ability to build new homes.

In addition, we also asked whether tenants would agree with a higher rent ‘premium’ being charged for newly built and/or newly modernised social rented homes.

With many tenants experiencing increased financial pressures as a result of the pandemic and recent cost-of-living crisis, the consultation also asked about tenants’ experiences when seeking advice and support to pay their rents and suggestions for improvement.

We received 1,159 responses through our online and postal survey.  This was the highest number of responses ever received and was a 160% increase from the previous high of 445 received for the 2022/23 budget consultation. 

We also received 1,000 responses through a dedicated telephone survey of randomly selected tenants, who were asked the same rent related questions as those in the online and postal survey. 

After the removal of duplicated entries from tenants who responded through the online/postal survey as well as the commissioned phone survey, just under 2,100 (around 10% of all tenants) responses were considered. It should be noted that not all tenants answered all of the questions.

Of the three rent increase options consulted on, around two thirds of respondents (66%) voted for a 4.1% per year rent increase for the next five years, 25% of respondents voted for a 5.0% per year rent increase for the next five years, and 9% voted for 8.4% per year rent increase for the next five years.

Comments from tenants showed that there was understanding of the need to increase rents to pay for the increased costs. However, financial pressure from the cost-of-living crisis and affordability remained a concern to some tenants. Some tenants felt that rent should only be increased if the standards of homes, repairs and services were improved.

Nearly 60% of the respondents agreed that the Council should consider charging a higher rent for new built homes (26%), newly modernised homes (3%) or both new built and newly modernised homes (29%). While there was general support for continuing investment on building new homes, tenants believed investment priority should be given to improving existing homes.

The rent consultation also found that just over a third (34%) of the respondents had found it more difficult to pay their rent over the last 12 months, but only 42% of them had sought advice or help to assist with paying the rents.  For those who had sought advice or help, the majority (55%) were very or fairly satisfied that the assistance they received met their needs. Tenants commented that it was important to promote the advice and support available regularly and that the information needed to be more accessible.

The Housing Revenue Account (HRA) Budget Strategy 2024/25 - 2028/29 was considered by City of Edinburgh Council at its budget meeting on 22 February 2024.

After two years of rent freezes followed by a 3% rent increase last year, officers recommended that rents be increased by 8.4% in 2024/25 (year one of a five-year rent strategy; requiring annual increases of 8.4% for the subsequent four years).  This was in order to deliver the pre-Covid investment plan and ensure the HRA remained in a healthy financial position.

Council agreed a 7% rent increase for each of the next five years in 2024/25 to 2028/29, with an assumption that 7% a year rent increase over the following five years would also be required to achieve the outputs indicated in the draft ten-year capital investment programme – to bring all Council homes up to Energy Efficiency Standard for Social Housing 2 (EESSH2) standards over the lifetime of the business plan and deliver 3,560 new social rented homes over the next ten years.

Council also approved the continuation of the Tenant Hardship Fund to support tenants experiencing financial hardship, including those who cannot access benefits.