Rent increases of 4.1% for the coming year have been approved for Council houses in South Ayrshire Council following a special meeting of the Council’s Policy and Resources Committee.

The figure has been set at 1% above the rate of inflation (RPI) which was effective in September 2004.

Said the Leader of South Ayrshire Council, Councillor Andy Hill: “The increase being applied is in accordance with what was discussed at a Rents Conference held earlier this month, when tenants were fully involved in discussions.”

And he explained: “Within the Stock Appraisal study, the recommendations of which were approved by the Council in December, 2001, a key assumption was that rents would rise over the next 30 years at an annual rate which would be based on the rate of inflation plus one percent.

“We have once again abided by that decision.”

Last year, although budget figures for the Council’s Housing Revenue Account showed that an increase of 6.63% was needed to balance income with expenditure and meet a projected shortfall the Council took the decision to apply an increase of only 3.8%, which was the rate of inflation that applied in September, 2003, plus one percent.

Details of base rents –24 charging fortnights:

The Committee also set the levels of rent that will be charged in 2005/06 for garages, garage sites and garden maintenance.

The current charges for garages are £219.84 per annum (£4.58 per week based on a 48 week year). For 2005/06 the figure of £228.96 per annum has been agreed (£4.77 per week, excluding VAT). This represents a 4.15% increase.

Garage site rents are charged where tenants erect their own garage on a Council owned site. This annual charge is currently £36.33 (excluding VAT) per annum. For 2005/06 the figure of £37.82 per annum –a rise of 4.1% - has been decided.

Garden Maintenance charges are presently £111 per annum which will be increased by 4.05% to £115.50 (excluding VAT) per annum in 2005/06.

The new charges take effect from April 1, 2005.

January 2005