Housing association tenants face rent rises across Glasgow

Housing associations are setting their rent for 2024/25 and are obliged to consult with tenants before they increase how much they charge.

The Glasgow Times has obtained the proposed increases from a number of social landlords in the city.

The largest, Wheatley Homes Glasgow with 42,000 properties, is planning one of the biggest increases with options of a 7.5% or 7.9% rent rise put to tenants.

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Wheatley states carrying out repairs, which it said was the biggest part of its spending, is up by 8.6%.

Rising interest rates making loans more expensive, a hike in insurance premiums and high energy and fuel prices adding to the overall costs incurred by the landlord are all given as reasons for the rise.

A spokesperson for Wheatley Homes Glasgow said: “We do everything we can to keep rents as low as possible. In fact, over the last five years, our cumulative increase has been 8% below CPI inflation.

“Unfortunately, there are big financial issues in the UK that we can’t control such as high inflation and interest rates, as well as rising energy and insurance bills.  

“It makes it increasingly difficult to deliver the services tenants want from us - and that we are legally required to provide - such as repairs, building more homes to address the homelessness crisis and delivering neighbourhood environmental services. 

“Any tenant worried about their rent should get in touch with us straight away. We have a range of support services to help.”  

Wheatley said the 7.5% rise would keep repairs at current levels and fund £18.4m of investment.

In addition, the 7.9% rise would fund an extra £800,000 worth of investment.

A breakdown shows 73% of Wheatley rent money goes on investment and maintenance, 16% on staffing costs, 7% on loan repayments and 4% on community support.

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Other associations in Glasgow have proposed rises ranging between 4% and 10%.

Of those we were able to obtain details for, most were between 6% and 7%.

Milnbank Housing Association, with 1600 homes in the East End of the city, plans to raise rents by between 6.9% and 7.9%.

The association states: “The cost of living situation affects many of our tenants, and the many inflationary pressures which we have been facing, make it especially critical that this consultation tries to find the right balance between rent affordability and the need to maintain our services and continue investing in our homes.”

Most of the landlords cite inflation and the increasing costs of carrying out repairs and investment programmes as the need to hike rents.

Ng Homes is one of the biggest social landlords in North Glasgow, with more than 5000 homes.

It proposes a 6%, 6.5% or 7% increase for the coming year.

It stated: “Last year we advised we were experiencing increased costs in relation to materials, energy suppliers and more - unfortunately, this year is no different.

“We are striving to mitigate the impact this has on services to our customers and investment in our homes as much as possible while keeping in mind the cost-of-living crisis.

“We want to keep our rent as affordable as possible, particularly for our tenants who are on low incomes. However, if rents do not increase, we will only be able to carry out essential repairs and maintenance – and we may have to cancel or postpone major works.”

Thenue Housing Association with 3000 homes is understood to be proposing an 8% rise.

Reidvale Housing Association shareholders recently rejected a possible transfer to Places for People.

Places for People pledged a rent freeze and the Reidvale management said that a rent rise of 10% was needed if the transfer did not proceed.

Housing campaigners were concerned about the rent rises.

Sean Clerkin, campaign coordinator, the Scottish Tenants Organisation, said: The Scottish Government needs to implement watertight rent controls in the social rented sector in Glasgow and throughout Scotland as most registered social landlords in Scotland are intent on steep rent rises over the next four years above the rate of inflation. They must not be allowed to get away with daylight robbery.”

He added: “The proposed rent hike by the Wheatley Housing Group of either 7.5% or 7.9% is unacceptable for low-income tenants and their families in the middle of a cost of living crisis as it will drive many tenants and their families into destitution and homelessness if this massive rent increase is allowed to go ahead.”

The following Registered Social Landlords have published their rent consultations and proposed increases.

Ardenglen          6%

Bield                    6.7%

Blairtummock 6%

Blochairn           5.5%

Cadder                6.6%

Calvay                 5.6 or 7.6%

Cathcart             5.6% or 7%

Drumchapel      5.6%

Elderpark           5.7%

Glasgow West  6.7%

Glenoaks           4% or 5%

Govan                 6.25% or 6.5%

Hawthorn          4.8% or 5.1%

Kingsridge/        

Cleddans           6.7%

Link                      7.5% or 8%

Maryhill               5% or 6%

Milnbank            6.9%, 7.5% or 7.9%

New Gorbals      6.7%

Ng Homes         6%,6.5% or 7%

North View        4.6%

Partick                 5%

Provanhall         5% or 6%

Queens Cross  5%

Reidvale             10%

Ruchazie            6.5%

Sanctuary          5.8%

Southside           6.7%

Thenue                8%

Tollcross             6.5%

Wellhouse         4.7%, 5.7% or 6.7%

Wheatley            7.5% or 7.9%

Yoker                   4.6%, 5% or 6.1%