Clacks council set to approve six per cent rent hike

Following consultation which sought views on hikes of six, seven and eight per cent increases, the housing service are seeking the go-ahead for the change which would be effective from March 30 this year.

A report to go in front of Clackmannanshire Council on Thursday explained that six per cent was the “minimum required” to sustain service delivery at its current level.

“Other options of seven per cent and eight per cent increase would realise benefit to the service by allowing for increased levels of CFCR to be provided and an associated reduction in required borrowing,” it stated.

“A rent increase below the recommended six per cent would result in a risk to the future of the Capital Programme with a need for higher rent rises in future years and increased borrowing requirements, any reduction in the Capital Programme would compromise housing stock quality and put at risk future investment in new housing supply.

“Whilst we are still in a healthy situation with regards to outstanding debt, not increasing rent by the minimum requirement of six per cent would present a real and significant risk that could lead to the Housing Service a) – not being able to perform its statutory functions and/or b) not meeting tenant and regulatory expectations.”

Over the past eight years, average weekly council rents in the Wee County have gone from £78.91 in 2018/19 to £97.94 in 2025/26 which is an average increase of £19.03 per week or 2.1 per cent.

The report from the council’s Strategic Head of Place, Kevin Wells, added: “Over the same period, inflation has been 35.9 per cent.

“In addition to the increased operating costs attributed to salary increases, the Service also faces inflationary cost increases associated with building utilities/energy costs, fleet use-age, and construction works relating to repairs and planned capital investment in our housing stock.

“Increased operating costs must be accounted for whilst still allowing for sufficient surplus to be generated to maintain a minimal HRA reserve of five per cent of revenue income as well as provide capital funded from current revenue (CFRC) to support the delivery of the capital programme.

“Taking into account the increased operating costs associated with housing service delivery, and projections based on assumed inflation in future years, the modelling by Council finance and housing teams resulted in the recommendation of a six per cent rent increase for 2026/27 as being the minimum required to sustain service delivery at its current level.”

Councillors will also be asked back a new weekly rental amount of £98.56 for 2025/26 for residents at the Westhaugh Travellers’ Site.

This will then be subject to the same six per cent rise from March 30 in line with the recommended increase to house rents.

The report added: “Using the updated rent setting model, the proposed base pitch rent will align with the general needs rent for a two apartment property, which equates to £98.56 in the 2025/26 financial year.

“This is equivalent to the rental price of a one bedroom semi-detached house or bungalow, ensuring consistency with our broader housing stock.

“Future rent adjustments will continue to follow the annual rent review exercise, taking into account any proposed changes for 2026/27 and beyond.

“This approach ensures that rents remain fair, transparent and sustainable whilst supporting residents and the long-term financial viability of the site.”