Rent increases of 4.6% for 2007/2008 have been approved for council houses in South Ayrshire at a 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 2006.

Said the Leader of South Ayrshire Council, Councillor Gibson T. Macdonald: “The increase being applied is in accordance with what was discussed at a meeting with the South Ayrshire Tenants Group in December.

And he explained: “The Council’s Stock Appraisal study in 2001 contained a key assumption that rents would rise over the following 30 years at an annual rate which would be based on the rate of inflation plus 1%. This rate of increase has been applied annually since that time, and we have once again agreed the same formula.

“The RPI rate published by the Treasury in September was 3.6 % , and so we have approved the rent increase being set at 4.6 %.”

Details of base rents – 24 charging fortnights:

1 Apt, double glazed          £81.46                                (+ £3.75)  =  £85.21

3 Apt, double glazed          £89.44                                (+ £4.11)  =  £93.55

5 Apt, double glazed          £97.66                                (+£4.49)   =  £102.15

The Committee also set the levels of rent that will be charged in 2007/08 for garages, garage sites and garden maintenance.
 
The current charges for lock-ups are £237.60 per annum (£4.95 per week based on a 48 week year).  For 2007/08 the figure of £248.64 per annum has been agreed  (£5.18 per week, excluding VAT). This represents a 4.65% increase.

Garage site rents are charged where tenants erect their own garage on a Council owned site. This annual charge is currently £39.22 (excluding VAT) per annum.  For 2007/08 the figure of £41.02 per annum – a rise of 4.6% - has been decided. 

Garden Maintenance charges are presently £119.80 per annum which will be increased by 4.6% to £125.31 (excluding VAT) per annum in 2007/08.

January 2007