Rent Setting

When setting rents, Knowes must comply with the Housing (Scotland) Act 2001, Part 2, Section 25 in particular with regard to rent increases: - ‘Where the Landlord under a Scottish Secure Tenancy proposes to increase the rents ……..payable by all…its tenants, it must, before giving notice under subsection (1) – (a) consult those of its tenants who would be affected by the proposal, and (b) have regard to the views expressed by those consulted.’

Knowes’ current rent policy and the Scottish Housing Regulator performance standards state that Knowes should set rents based on affordability to its tenants, comparability (with other social housing providers in the area) and viability (ensuring existing contractual agreements and loan covenants are met).

Knowes’ rent policy has been reviewed in summer 2009 following consultation with all its tenants. 

Every year Knowes consults with its tenants with regards to the annual rent increase which normally takes effect from the 1st April.  

Following consultation with the tenants on our database and approval by the Management Committee on 1^st February,  the rent increase for all tenants from the 1^st April 2011 will be 4.9%. (The retail price index in January 2011 shows an increase on last year of 5.1% and the consumer price index has increased by 4.0%.  After much discussion Knowes’ rent increase was is set at 4.9% for the forthcoming year in order to meet current and future repairs, maintenance and major component replacement expenditure.