A Fife tenants and residents’ group has slammed the region’s social housing rent policy as “unfair and unaffordable” and has increased calls for a change.
Members of the Fife Federation of Tenants and Residents Associations (FFOTRA) took a swipe at what they called a “flawed” and “out of date” strategy in relation to rent setting as they gathered for their annual general meeting in Kirkcaldy.
Fife Council has applied increases using the formula Retail Price Index (RPI) plus 1%, with councillors agreeing a 4.9% hike in rents on that basis for 2018/19 back in February.
However, Alex Condie, FFOTRA chair, argues the use of the RPI is no longer fit for purpose as rents and household costs have increased faster than wages.
“Tenants now find they have to pay around a week’s wage to rent a family home for a month while benefits are frozen at current levels and wage packets will continue to reduce in value,” he said.
“Is it fair that rent increases should be based on the increases in the cost of food, alcohol, clothing, holidays and so on?
“Even this year’s increases in rent will add to the cost of living calculation that results in next year’s rent being even higher than this year’s.
“Surely the basis for calculating the increased cost of renting should focus on the landlords’ costs which are obtained as easily as RPI and bear no relationship to a weekly shopping list?”
Mr Condie also pointed out research from the Joseph Rowntree Foundation which suggests the free disposable income needed to provide for a two-child family is £474 a week.
The families who are “just managing” in Fife, Mr Condie added, have a total combined income of around £323 a week.
“Far from being affordable to all but the least well off, social housing rent and other household costs according to the Joseph Rowntree Foundation are affordable only to families living on more than a single average wage,” he commented.
“Many better off tenants have managed to keep a fairly good standard of living but without being able to create a significant bank account.
“Job loss introduces them to a new world of Universal Credit and dependence on a welfare support system that strips away benefits if the demands of the system aren’t fully met.
“If you can’t cope with this new world and don’t have the means to sustain credit, then it leads to insecurity, loss of self confidence and debt.”
A spokesperson for Fife Council said: “Fife Council is aware of tenants’ anxiety on this year’s rent increase of 4.9%. This increase was supported by the majority of Fife Council tenants who responded to our annual rent survey in December 2017-January 2018. Fife Council rents represent good value and they are still below the Scottish average for Local Authorities and significantly below other social rents in Fife.
“That said, we are embarking on a programme of in-depth tenant scrutiny of the Housing Revenue Account and I would expect a robust discussion on future rent increases to support the council housing improvements and new build programme which is the largest in Scotland.”
