Every year we look at our budgets and decide if we need to apply a rent increase based on the cost of delivering services.

We are now consulting with our tenants about a proposal to increase our overall rental income by either 2.61%, 3.02% or 3.45%.  

 

  1. Rent Review & Restructure 
  2. Rent Options
  3. Rent Consultation Survey



Rent Review & Restructure:
This year’s rent review will be the 3rd year of our phased rent restructure.   
This means that as well as looking at our overall rent increase, we will be restructuring some of our rents so that eventually everyone will be paying the same rent for properties of the same type and size.  

This approach was agreed after tenants told us that they would prefer any changes to their rent to be phased in over a number of years in order to soften the impact of larger increases for some tenants; however most of our tenants will only see a small increase or no changes at all, as rents continue to be re-aligned over the next few years.

If you are an Ore Valley Housing Association tenant you will receive a letter and leaflet with more information on the rent structure, and how our proposed inflationary increases will affect you, along with the accompanying information tables for option 1, option 2 and option 3 which are shown below.

The increases proposed will allow us to continue with an extensive programme of property maintenance and improvement whilst ensuring that overall any rent increases will be kept below a figure of £5.00 per week and increases at this level will only apply to a small group of tenants.

Information available at present suggests that other social landlords in Fife, including Fife Council, are also consulting on an increase ranging from 2.5 - 6%. As stated above the range proposed by OVHA is an overall increase of 2.61% - 3.45%. 

We are also using affordability data to ensure that our rents are as affordable as possible for our tenants, while still allowing us to deliver the standard of service that you would expect from us.

We are now asking for your feedback on the general principles outlined in the letter you will receive.  Your feedback will be incorporated into a report to the Board of OVHA, as part of their rent review considerations.

Following the Board meeting, letters will be sent to all tenants outlining the new rent payable with effect from 1st April 2018.

In the meantime, please complete the consultation form you received with the letter we posted out to you and return it to us by Friday 19th January 2018 at the latest. Alternatively you can fill in the online survey below.

If you have any queries in relation to the rent review, please do not hesitate to contact the office on 01592 721917.

2017/18 - Rent Charge per property size and type

Table 1

 2017/18

 Flat

 Bungalow

 House

 1 bedroom

 £287.51

 £297.97

  -

 2 bedroom

 £324.11

 £344.56

 £345.02

 3 bedroom

 £350.24

 £360.70

 £371.15

 4 bedroom

 £381.61

 £392.06

 £402.52

 

Rent Options:


Option 1:

Overall Increase of 2.61% resulting in an increase of 3% to the restructured rent

Increase in overall annual income of £70,514

 2017/18

 Flat

 Bungalow

 House

  1 bedroom

 £296.14

 £306.91

  -

 2 bedroom

 £333.83

 £354.90

 £355.37

 3 bedroom

 £360.75

 £371.52

 £382.29

 4 bedroom

 £393.06

 £403.82

 £414.59

 

 Weekly Increase

 No of Tenancies

 £0 - £2

 177

 £2.01 - £3

 427

 £3.01 - £4

 36

 £4.01 - £5

 25

 

  • If your current rent is the same at the rent in table 1 then your rent will increase by 3%
  • If your current rent is less than the rent in table 1 then your rent will increase by 3% plus the amount required to align your rent with the rent in option 1 (to a maximum of £10.00 per month).
  • If you current rent is more than the rent in option 1 then you rent will not increase


Option 2:

Overall Increase of 3.02% resulting in an increase of 3.5% to the restructured rent

Increase in overall annual income of £81,680

 2017/18

 Flat

 Bungalow

 House

 1 bedroom

 £297.58

 £308.40

  -

 2 bedroom

 £335.45

 £356.62

 £357.09

 3 bedroom

 £362.50

 £373.32

 £384.14

 4 bedroom

 £394.97

 £405.78

 £416.61

 

 Weekly Increase

 No of Tenancies

 £0 - £2

 141

 £2.01 - £3

 423

 £3.01 - £4

 73

 £4.01 - £5

 22

 £5.01 - £6

 6 capped at £5

 

  • If your current rent is the same at the rent in table 1 then your rent will increase by 3.5%
  • If your current rent is less than the rent in table 1 then your rent will increase by 3.5% plus the amount required to align your rent with the rent in option 2 (to a maximum of £10.00 per month).
  • If you current rent is more than the rent in option 2 then you rent will not increase

 

Option 3:

Overall Increase of 3.45% resulting in an increase of 4% to the restructured rent

Increase in overall annual income of £93,175

 2017/18

 Flat

 Bungalow

 House

 1 bedroom

 £299.01

 £309.89

  -

 2 bedroom

 £337.07

 £358.34

 £358.82

 3 bedroom

 £364.25

 £375.13

 £386.00

 4 bedroom

 £396.87

 £407.74

 £418.62

 

 Weekly Increase

 No of Tenancies

 £0 - £2

 131

 £2.01 - £3

 118

 £3.01 - £4

 357

 £4.01 - £5

 49

 £5.01 - £6

 10 capped at £5

 

  • If your current rent is the same at the rent in table 1 then your rent will increase by 4%
  • If your current rent is less than the rent in table 1 then your rent will increase by 4% plus the amount required to align your rent with the rent in option 2 (to a maximum of £10.00 per month).
  • If you current rent is more than the rent in option 2 then you rent will not increase

 

Rent Consultation Survey: