Rent increases of 3.7% for 2006/2007 have been approved for South Ayrshire Council tenants by members of the Council's Policy and Resources Committee.

The figure has been set at 1% above the rate of inflation (RPI) that was effective in September 2005.

The Leader of South Ayrshire Council, Councillor Gibson T Macdonald said: "Members of South Ayrshire Tenants groups were made aware of the proposed increase and no adverse comments have been received from them.

"The amount of increase has been arrived at by taking into account the annual rate of inflation, which is based on the Retail Price Index, plus 1%, which gives an increase of 3.7%."

In 2001 the Council's Stock Appraisal study, which was approved by the Council, made a key assumption 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.

The increases will be as follows:

Base Rents - 24 Charging Fortnights

The Committee also set the levels of rent that will be charged in 2006/07 for garages, garage sites and garden maintenance.

The current charges for garages are £228.96 per annum (£4.77 per week based on a 48 week year). For 2006/07 the figure of £237.60 per annum has been agreed (£4.95 per week, excluding VAT). This represents a 3.7% increase on 2005/06 levels.

Garage site rents are charged where tenants erect their own garage on a Council owned site. This annual charge is currently £37.82 (excluding VAT) per annum. For 2006/07 the figure of £39.22 per annum has been agreed. This represents a 3.7% increase on 2005/06 levels.

Garden Maintenance charges are presently £115.50 per annum which will be increased by 3.7% to £119.80 per annum (excluding VAT).

The new charges take effect from 1 April 2006.

January 2006